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How Elastic Is Calorie Demand? Parametric, Nonparametric, And Semiparametric Results For Urban Papua New Guinea

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  • Gibson, John
  • Rozelle, Scott

Abstract

This paper seeks further evidence on the elasticity of calorie demand with respect to household resources. The case presented is for urban areas of Papua New Guinea, where just over one-half of the population appear to obtain less than the recommended amount of dietary energy. The relationship between per capita calorie consumption and per capita expenditure in urban areas of Papua New Guinea is not consistent with the view that income changes have negligible effects on nutrient intakes. The unconditional calorie demand elasticity is approximately 0.6 for the poorest half of the population, most of whom have less than the recommended 2000 calories per day available to them. Using parametric and semiparametric estimation to control for a wide range of other influences on calorie consumption does not materially reduce the size of the elasticity. Therefore, these results are not supportive of “growth-pessimism” and instead suggest that policies that increase urban household incomes will also act to reduce undernutrition.

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Bibliographic Info

Paper provided by University of California, Davis, Department of Agricultural and Resource Economics in its series Working Papers with number 11961.

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Date of creation: 2000
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Handle: RePEc:ags:ucdavw:11961

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Keywords: Food Consumption/Nutrition/Food Safety;

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  1. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, October.
  2. Sonia Bhalotra & Cliff Attfield, 1998. "Intrahousehold resource allocation in rural Pakistan: a semi-parametric analysis," LSE Research Online Documents on Economics 6679, London School of Economics and Political Science, LSE Library.
  3. Robinson, Peter M, 1988. "Root- N-Consistent Semiparametric Regression," Econometrica, Econometric Society, vol. 56(4), pages 931-54, July.
  4. Ravallion, Martin, 1990. "Income Effects on Undernutrition," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 489-515, April.
  5. Anglin, Paul M & Gencay, Ramazan, 1996. "Semiparametric Estimation of a Hedonic Price Function," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 633-48, Nov.-Dec..
  6. Delgado, Miguel A & Robinson, Peter M, 1992. " Nonparametric and Semiparametric Methods for Economic Research," Journal of Economic Surveys, Wiley Blackwell, vol. 6(3), pages 201-49.
  7. Behrman, Jere R. & Wolfe, Barbara L., 1984. "More evidence on nutrition demand : Income seems overrated and women's schooling underemphasized," Journal of Development Economics, Elsevier, vol. 14(1), pages 105-128.
  8. Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June.
  9. Subramanian, Shankar & Deaton, Angus, 1996. "The Demand for Food and Calories," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 133-62, February.
  10. Ruel, Marie T. & Garrett, James L. & Morris, Saul Sutkover & Maxwell, Daniel G. & Oshaug, Arne & Engle, Patrice L. & Menon, Purnima & Slack, Alison T. & Haddad, Lawrence James, 1998. "Urban challenges to food and nutrition security," FCND discussion papers 51, International Food Policy Research Institute (IFPRI).
  11. Bouis, Howarth E. & Haddad, Lawrence J., 1992. "Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range," Journal of Development Economics, Elsevier, vol. 39(2), pages 333-364, October.
  12. Bouis, Howarth E., 1994. "The effect of income on demand for food in poor countries: Are our food consumption databases giving us reliable estimates?," Journal of Development Economics, Elsevier, vol. 44(1), pages 199-226, June.
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Cited by:
  1. Phillip Hone, 2003. "Health Promotion and Food Choice in the South Pacific," Economics Series 2003_01, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  2. Ferda HALICIOGLU, 2012. "The Demand for Calories in Turkey," Iktisat Isletme ve Finans, Bilgesel Yayincilik, vol. 27(316), pages 93-108.
  3. Ogundari, Kolawole & Abdulai, Awudu, 2012. "A meta-analysis of the response of calorie demand to income changes," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123287, International Association of Agricultural Economists.
  4. Halliday, Timothy J., 2008. "Mismeasured Household Size and Its Implications for the Identification of Economies of Scale," IZA Discussion Papers 3896, Institute for the Study of Labor (IZA).
  5. Salois, Matthew & Tiffin, Richard & Balcombe, Kelvin, 2010. "Calorie and Nutrient Consumption as a Function of Income: A Cross-Country Analysis," MPRA Paper 24726, University Library of Munich, Germany.
  6. Ogundari, Kolawole & Abdulai, Awudu, 2013. "Examining the heterogeneity in calorie–income elasticities: A meta-analysis," Food Policy, Elsevier, vol. 40(C), pages 119-128.
  7. Bhavani Shankar & Yi Liu, 2007. "Will rising household incomes solve China's micronutrient deficiency problems?," Economics Bulletin, AccessEcon, vol. 15(10), pages 1-14.
  8. Hoddinott, John F. & Sandström, Susanna & Upton, Joanna, 2014. "The impact of cash and food transfers: Evidence from a randomized intervention in Niger:," IFPRI discussion papers 1341, International Food Policy Research Institute (IFPRI).
  9. repec:fpr:export:1341 is not listed on IDEAS
  10. Phillip Hone, 2003. "Food Choice and Nutrition in Fiji," Economics Series 2003_02, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
  11. Shankar, Bhavani, 2009. "Fat Chance: Modelling the Socio-Economic Determinants of Dietary Fat Intake in China," 2009 Conference, August 16-22, 2009, Beijing, China 51538, International Association of Agricultural Economists.

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