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Consumer Demand for Food Commodities in the United States with Projections for 1980

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  • George, P.S.
  • King, Gordon A.
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    Abstract

    This study analyzes the demand for food commodities in the United States in the postwar period using both time-series and cross-section data. Income-consumption relationships are based on data from 1955 and 1965 USDA household food consumption surveys. The analysis co cross section data emphasized: (1) effects of grouping observations, (2) choice between expenditures are quantities as the dependent variable, (3) effects of household size on income-consumption relationships, (4) shifts in the regression coefficients (intercepts and income elasticities) between 1955 and 1965, and (5) regional variations in the income-consumption relationships. A demand interrelationship matrix was developed for 49 commodities or commodity groups at the retail level. Commodities were classified into 15 separable groups and all direct and cross elasticities for commodities within a group were estimated directly. The cross elasticities corresponding to commodities outside a given group were estimated through assumptions of cardinal separability. The synthesis of demand interrelationships was achieved by the use of restrictions on demand equations for an individual consumer as suggested by Frisch (1959) and quantified by Brandow (1961). Consideration also was given to the measurement of time trends on consumption. Marketing margins were analyzed and demand interrelationships were developed at the farm level. Projections of 1980 consumption per capita were developed for individual commodities and group aggregates. These projections are based on a specification of constant real prices, exogenous projections of real income per capita, and continuation of past time trends for certain commodities.

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    Bibliographic Info

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    This book is provided by University of California, Davis, Giannini Foundation in its series Monographs with number 11936 and published in 1971.

    Handle: RePEc:ags:dgiamo:11936

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    Phone: 530-752-1517
    Fax: 530-752-5614
    Web page: http://www.agecon.ucdavis.edu/
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    Keywords: Demand and Price Analysis; Institutional and Behavioral Economics;

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    Cited by:
    1. Magrath, William B. & Tauer, Loren W., 1986. "The Economic Impact Of Bgh On The New York State Dairy Sector: Comparative Static Results," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(1), April.
    2. Li, Chenguang & Sexton, Richard J., 2009. "Impacts of Retailers’ Pricing Strategies for Produce Commodities on Farmer Welfare," 2009 Conference, August 16-22, 2009, Beijing, China 51720, International Association of Agricultural Economists.
    3. Tweeten, Luther G., 1980. "An Economic Investigation Into Inflation Passthrough To The Farm Sector," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 5(02), December.
    4. Wells, Gary J. & Thompson, C. Stassen & Miller, Stephen E., 1983. "An Examination of the Farm Level Demand for Pecans," Working Papers 116877, Clemson University, Department of Agricultural and Applied Economics.
    5. Redman, Barbara J., 1980. "Household Expenditure On Meat Versus Nonmeat Sources Of Protein In The United States," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(02), December.
    6. Cooke, Stephen C. & Sundquist, W. Burt, 1987. "Cost Structures, Productivities and the Distribution of Technology Benefits Among Producers for Major U.S. Field Crops," Evaluating Agricultural Research and Productivity, Proceedings of a Workshop, Atlanta, Georgia, January 29-30, 1987, Miscellaneous Publication 52 50020, University of Minnesota, Agricultural Experiment Station.
    7. Beck, Robert L. & Mather, Loys L., 1976. "Price-Margin Movements In The Fluid Milk Industry," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 8(02), December.
    8. Byrne, Patrick J. & Capps, Oral, Jr. & Williams, Gary W., 1993. "U.S. Demand For Lamb: The Other Red Meat," Journal of Food Distribution Research, Food Distribution Research Society, vol. 24(1), February.
    9. Spillers, Paul D. & Havlicek, Joseph, Jr., 1973. "A Simulation Analysis Of The Effects Of A Product Tax On The Packaging Waste Output Of Selected Food Products," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 5(02), December.
    10. Li, Lan & Carman, Hoy F. & Sexton, Richard J., 2006. "Grocery Retailer Pricing Behavior for California Avocados with Implications for Industry Promotion Strategies," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25494, International Association of Agricultural Economists.
    11. Vassilopoulos, Achilleas & Klonaris, Stathis & Drichoutis, Andreas C. & Lazaridis, Panagiotis, 2012. "Modeling quality demand with data from Household Budget Surveys: An application to meat and fish products in Greece," Economic Modelling, Elsevier, vol. 29(6), pages 2744-2750.
    12. Griffith, Garry R., 2000. "Competition in the food marketing chain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), September.
    13. Street, J.A., 1974. "Demand for Milk," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 42(02), June.
    14. Dunn, James E. & Heien, Dale, 1985. "The Demand For Farm Output," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(01), July.
    15. Grande, Jorunn & Houck, James P. & Olson, Kent D., 1994. "Projected Consumption Of Livestock Products," Staff Papers 13642, University of Minnesota, Department of Applied Economics.
    16. Richardson, Robert A., 1976. "Structural Estimates Of Domestic Demand For Agricultural Products In Australia: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 44(03), September.

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