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Household versus Community Effects: Who Really Pays More for Food?

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Author Info
Stewart, Hayden
Blisard, Noel
Abstract

One strand of literature shows a household’'s cost of food to vary with the household’'s own income and demographic characteristics. For example, low-income households may tend to purchase less costly bundles of food. However, a separate strand of literature also shows food prices to vary spatially with the characteristics of communities, such as real estate prices. In this study, a model is developed that unites these two strands. Simulations further illustrate the effect that a community’'s characteristics can have on a household’'s food budget, if the household lives in each of ten cities in the United States.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21053.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21053

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Keywords: Consumer/Household Economics;

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  7. Tirtha Dhar & Jean-Paul Chavas & Brian W. Gould, 2003. "An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(3), pages 605-617, 08. [Downloadable!] (restricted)
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  9. Stewart, Hayden & Davis, David E., 2005. "Price Dispersion and Accessibility: A Case study of Fast Food," MPRA Paper 7970, University Library of Munich, Germany. [Downloadable!]
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  13. Capozza, Dennis R & Van Order, Robert, 1980. "Unique Equilibria, Pure Profits, and Efficiency in Location Models," American Economic Review, American Economic Association, vol. 70(5), pages 1046-53, December. [Downloadable!] (restricted)
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  16. Capozza, Dennis R & Van Order, Robert, 1978. "A Generalized Model of Spatial Competition," American Economic Review, American Economic Association, vol. 68(5), pages 896-908, December. [Downloadable!] (restricted)
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