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The Generalized Composite Commodity Theorem and Food Demand Estimation

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  • Albert J. Reed
  • J. William Levedahl
  • Charles Hallahan

Abstract

This article reports tests of aggregation over consumer food products and estimates of aggregate food demand elasticities. Evidence that food demand variables follow unit root processes leads us to build on and simplify existing tests of the Generalized Composite Commodity Theorem. We compute food demand elasticities using a method of cointegration that is shown to apply to a convenient but nonlinear functional form. Estimates are based on consumer reported expenditure data rather than commercial disappearance data. Copyright 2005, Oxford University Press.

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File URL: http://hdl.handle.net/10.1111/j.0002-9092.2005.00699.x
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Bibliographic Info

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

Volume (Year): 87 (2005)
Issue (Month): 1 ()
Pages: 28-37

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Handle: RePEc:oup:ajagec:v:87:y:2005:i:1:p:28-37

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Cited by:
  1. Zhen Miao & John C. Beghin & Helen H. Jensen, 2011. "Accounting for Product Substitution in the Analysis of Food Taxes Targeting Obesity," Center for Agricultural and Rural Development (CARD) Publications 10-wp518, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  2. Schroeter, Christiane & Lusk, Jayson & Tyner, Wallace, 2008. "Determining the impact of food price and income changes on body weight," Journal of Health Economics, Elsevier, vol. 27(1), pages 45-68, January.
  3. Asche, Frank & Guttormsen, Atle G. & Kristofersson, Dadi & Roheim, Cathy A., 2005. "Import Demand Estimation and the Generalized Composite Commodity Theorem," 2005 Annual meeting, July 24-27, Providence, RI 19432, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Schroeter, Christiane & Lusk, Jayson L. & Tyner, Wallace E., 2005. "Determining the Impact of Food Price and Income Changes on Obesity," 2005 Annual meeting, July 24-27, Providence, RI 19234, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Trenton Smith & Christiana Stoddard & Michael G. Barnes, 2007. "Why the Poor Get Fat: Weight Gain and Economic Insecurity," Working Papers 2007-16, School of Economic Sciences, Washington State University.
  6. Okrent, Abigail M. & Alston, Julian M., 2012. "The Demand for Disaggregated Food-Away-from-Home and Food-at-Home Products in the United States," Economic Research Report 132469, United States Department of Agriculture, Economic Research Service.
  7. Catherine Durham & James Eales, 2010. "Demand elasticities for fresh fruit at the retail level," Applied Economics, Taylor & Francis Journals, vol. 42(11), pages 1345-1354.
  8. Leffler, Kristyn K. & Carpio, Carlos E. & Boonsaeng, Tullaya, 2012. "Temporal Aggregation and Treatment of Zero Dependent Variables in the Estimation of Food Demand using Cross-Sectional Data," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124913, Agricultural and Applied Economics Association.
  9. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Working Papers 162515, Robert Mondavi Institute Center for Wine Economics.

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