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Consumption patterns of food, tobacco and beverages: a cross-country analysis

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  • S. Selvanathan
  • E. A. Selvanathan

Abstract

This study considers the consumption patterns of food, tobacco, soft drinks, and alcohol in 43 developed and developing countries. Such an analysis is important for policy issues associated with tobacco, alcohol, and soft drinks. The results show that consumers in the developing countries spend a much higher proportion of their income on food than consumers in developed countries. The proportion of expenditure allocated to the other three commodities, tobacco, alcohol, and soft drinks, are similar in the two groups of countries. On average, people around the world allocate about one quarter of their income on food, 2.6% on tobacco, 3.2% on alcohol and 1.2% on soft drinks. The income elasticity estimates reveal that food is a necessity in most countries, while tobacco and alcohol are necessities in most of the developed countries and luxuries in a majority of developing countries. Soft drinks are a luxury in a majority of the developing as well as the developed countries. The own-price elasticities show that demand for all four commodities is price inelastic in all countries.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 13 ()
Pages: 1567-1584

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Handle: RePEc:taf:applec:v:38:y:2006:i:13:p:1567-1584

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  1. Selvanathan, Saroja, 1987. "A Monte Carlo test of preference independence," Economics Letters, Elsevier, vol. 25(3), pages 259-261.
  2. Laitinen, Kenneth, 1978. "Why is demand homogeneity so often rejected?," Economics Letters, Elsevier, vol. 1(3), pages 187-191.
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Cited by:
  1. Darwin Cortes & Jorge Perez, 2010. "El Consumo de los Hogares Colombianos, 2006-2007: Estimación de Sistemas de Demanda," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE.
  2. Jon P. Nelson, 2013. "Does Heavy Drinking by Adults Respond to Higher Alcohol Prices and Taxes? A Survey and Assessment," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 43(3), pages 265-291, December.

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