Water demand continues to increase in the western U.S., straining existing (and forecasted future) supplies. Water transfers – through either the sale of water rights or contractual leases of bounded duration – are now a well-established means of reallocating water to the highest economic benefit. Water is not a typical commodity, however. Significant variability in price across different geographic locations reflects differences in hydrologic conditions, demand and supply, and infrastructure development. These differences will persist even in well-functioning markets due to high transportation costs and user interconnectivity.

While sufficient data now exist to describe market activity and price trends, no study has yet performed a rigorous analysis that fully accounts for contract type (whether water rights transfer or lease) and price endogeneity. We fill this gap by estimating a simultaneous system of demand equations for rights transfers and leases that accounts for supply drivers of price determination. As one might anticipate, the demand for leases is more elastic than the demand for water rights. Accounting for contract type and price endogeneity provides a more accurate estimation of water’s market value in different locations across the western U.S. Ignoring either issue leads to significant biases with policy implications.

We utilize a Generalized Exact Affine Stone Index system to evaluate the structure of residential water demand that recognizes demand interrelationship between residential and bottled water in the United States, allowing for precommitted consumption. Further, we address expenditure and price endogeneity by accounting for the supply side of the price determination mechanism. A significant substitutability relationship between residential and bottled water is found, while substantial precommitments are established in both residential and bottled water consumption. Residential demand becomes price-elastic once the precommitted level is reached. Finally, ignoring substitutability, precommitments, or endogeneity distorts the demand structure, resulting in erroneous policy implications.

We adopt an EASI model to estimate demand for omega-3, organic, cage-free, and conventional eggs in the United States. Our empirical framework accounts for demand inter-dependencies among these egg types, while allowing for unrestricted Engel curves, unobserved consumer heterogeneity, and a broader product and geographic coverage. We further address endogeneity of prices and expenditures and left-censoring induced by disaggregate data. Our results indicate that the demand for organic and cage-free eggs is price-elastic, while the demand for omega-3 and conventional eggs is price-inelastic. Additionally, we establish strong substitutability relationships between the eggs. Finally, we measure consumer welfare consequences of rising domestic egg prices brought by Japan’s egg import tariff reductions.

We investigate food preference changes in Russia that may have resulted from political, economic, and other changes. Our empirical framework utilizes advances in consumer theory and exploits provincial-level panel data on food consumption and supply shifters to identify price and income effects. Our findings indicate that consumers underwent a structural preference change that began in 2007 and continued into 2014. To illustrate the magnitude of this change, we contrast economic effects for select food commodities across regions. The new insights will be useful in designing timely and effective food and trade policies, as well as informing strategy decisions of agribusiness industry players.