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A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income

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  • John L. Park
  • Rodney B. Holcomb
  • Kellie Curry Raper
  • Oral Capps
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    Abstract

    Using the 1987–88 Nationwide Food Consumption Survey, twelve food commodity groups were analyzed according to household poverty status. Parameter estimates were used to obtain subsistence expenditures, own-price elasticities, expenditure elasticities, and income elasticities. Own-price elasticities were similar between the income groups for most commodities. However, income elasticities were consistently higher for the lower-income group. The use of average estimates of price and income elasticities for the population as a whole for the projection of individual commodity demands is not likely to be successful if notable changes are evident in income distribution. Copyright 1996, Oxford University Press.

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    Bibliographic Info

    Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

    Volume (Year): 78 (1996)
    Issue (Month): 2 ()
    Pages: 290-300

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    Handle: RePEc:oup:ajagec:v:78:y:1996:i:2:p:290-300

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