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Changes in aggregate food demand over the business cycle

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  • Fleissig

Abstract

The globally flexible Fourier functional form is used to provide estimates of how substitution between types of food varies over time. Estimates of Morishima elasticities of substitution between food and nonfood aggregates often show considerable variability over time, typically during recessions. In contrast, estimates from locally flexible functional forms only provide estimates at a single data point and fail to provide insight into changes in substitution over the sample. Evidence of changes in substitution over time has important policy implications, especially attempts to encourage increased consumption of fruits and vegetables.

Suggested Citation

  • Fleissig, 2015. "Changes in aggregate food demand over the business cycle," Applied Economics Letters, Taylor & Francis Journals, vol. 22(17), pages 1366-1371, November.
    • Handle: RePEc:taf:apeclt:v:22:y:2015:i:17:p:1366-1371
    DOI: 10.1080/13504851.2015.1031868
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    References listed on IDEAS

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    Cited by:

    1. Caggiano, Giovanni & Castelnuovo, Efrem & Figueres, Juan Manuel, 2017. "Economic policy uncertainty and unemployment in the United States: A nonlinear approach," Economics Letters, Elsevier, vol. 151(C), pages 31-34.
    2. Tristan D. Skolrud, 2017. "Reducing Approximation Error in the Fourier Flexible Functional Form," Econometrics, MDPI, vol. 5(4), pages 1-16, December.
    3. Adrian R. Fleissig, 2020. "Impact of Casino Gambling and Lotteries on Demand for Other ‘Sin’ Goods," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 48(3), pages 327-338, September.

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