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On the Correspondence between Individual and Aggregate Food Consumption Functions: Evidence from the USA and the Netherlands

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Author Info
Anderson, Heather M
Vahid, Farshid

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Abstract

This paper provides evidence from the US and Dutch budget surveys that income elasticity of family food consumption is a function of family income and other observable characteristics of the household. It also finds that the conditional variance of family food consumption depends on family income. This complicated pattern of dependence of family food consumption on income breaks the exact correspondence between the family and the aggregate food consumption functions. Simple dynamic models for aggregate food consumption are developed which are used for forecasting.

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File URL: http://qed.econ.queensu.ca:80/jae/1997-v12.5/
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 12 (1997)
Issue (Month): 5 (Sept.-Oct.)
Pages: 477-98
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Handle: RePEc:jae:japmet:v:12:y:1997:i:5:p:477-98

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  1. Bernt P. Stigum, 2000. "Rationality in Econometrics," Econometric Society World Congress 2000 Contributed Papers 0747, Econometric Society. [Downloadable!]
  2. Giorgio Fagiolo, 2001. "Engel Curves Specification in an Artificial Model of Consumption Dynamics with Socially Evolving Preferences," LEM Papers Series 2001/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
  3. Bruce W. Hamilton, 2001. "Using Engel's Law to Estimate CPI Bias," American Economic Review, American Economic Association, vol. 91(3), pages 619-630, June. [Downloadable!] (restricted)
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This page was last updated on 2008-8-28.


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