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Demand For Healthy Food In The United States

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  • Feng, Xudong
  • Chern, Wen S.
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    Abstract

    This study investigates the demand for selected healthy food groups in the United States. The original linear approximate almost ideal demand system (LA/AIDS) is modified by the use of a Laspeyres index and a normalization in order to compute demand elasticities identically to the AIDS model. The results of this study suggest that poultry is the most price elastic while cereals are the least price elastic. Fresh fruits and fresh vegetables are more price elastic than processed fruits and processed vegetables. Increasing income would induce the increases in the consumption of fresh vegetables and fruits more than that of cereals and bakery products, while increasing health risk concerns would induce the decreases in the consumption of bakery products and poultry but the increases in the consumption of fresh vegetables and cereals. The demographic variables exhibit certain effects on the demand for some healthy food groups and seasonal fluctuations statistically exist in the consumption of all food groups under study.

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    File URL: http://purl.umn.edu/21857
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2000 Annual meeting, July 30-August 2, Tampa, FL with number 21857.

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    Date of creation: 2000
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    Handle: RePEc:ags:aaea00:21857

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    Related research

    Keywords: AIDS model; elasticity; healthy food; household demand; United States; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

    References

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    1. Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-56, May.
    2. Frank Asche & Cathy R. Wessells, 1997. "On Price Indices in the Almost Ideal Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1182-1185.
    3. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-59, June.
    4. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
    5. Moschini, GianCarlo, 1995. "Units of Measurement and the 'Stone Index' In Demand System Estimation," Staff General Research Papers 5058, Iowa State University, Department of Economics.
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    Cited by:
    1. 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.
    2. Yen, Steven T. & Lin, Biing-Hwan & Harris, James Michael & Ballenger, Nicole, 2004. "Demand For Differentiated Vegetables," 2004 Annual meeting, August 1-4, Denver, CO 20059, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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