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International Evidence on Food Consumption Patterns: An Update Using 2005 International Comparison Program Data

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  • Muhammad, Andrew
  • Meade, Birgit Gisela Saager

Abstract

In a 2003 report, International Evidence on Food Consumption Patterns, ERS economists estimated income and price elasticities of demand for broad consumption categories and food categories across 114 countries using 1996 International Comparison Program (ICP) data. This report updates that analysis with an estimated two-stage demand system across 144 countries using 2005 ICP data. Advances in ICP data collection since 1996 led to better results and more accurate income and price elasticity estimates. Low-income countries spend a greater portion of their budget on necessities, such as food, while richer countries spend a greater proportion of their income on luxuries, such as recreation. Low-value staples, such as cereals, account for a larger share of the food budget in poorer countries, while high-value food items are a larger share of the food budget in richer countries. Overall, low-income countries are more responsive to changes in income and food prices and, therefore, make larger adjustments to their food consumption pattern when incomes and prices change. However, adjustments to price and income changes are not uniform across all food categories. Staple food consumption changes the least, while consumption of higher-value food items changes the most.

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Bibliographic Info

Paper provided by United States Department of Agriculture, Economic Research Service in its series Technical Bulletins with number 120252.

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Date of creation: Mar 2011
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Handle: RePEc:ags:uerstb:120252

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Related research

Keywords: ICP 2005; high-value food products; consumption patterns; marginal share; income elasticity; price elasticity; ERS; USDA; Demand and Price Analysis; Food Security and Poverty; International Development; Research Methods/ Statistical Methods;

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  1. Ernesto Valenzuela & Kym Anderson & Thomas Hertel, 2007. "Impacts of Trade Reform: Sensitivity of Model Results to Key Assumptions," Centre for International Economic Studies Working Papers 2007-09, University of Adelaide, Centre for International Economic Studies.
  2. von Braun, Joachim, 2007. "The world food situation: New driving forces and required actions," Food policy reports 18, International Food Policy Research Institute (IFPRI).
  3. Reimer, Jeff & Thomas Hertel, 2004. "International Cross Section Estimates of Demand for Use in the GTAP Model," GTAP Technical Papers 1647, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
  4. James L. Seale & Anita Regmi, 2006. "Modeling International Consumption Patterns," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(4), pages 603-624, December.
  5. Thomas W. Hertel & L. Alan Winters, 2006. "Poverty and the WTO : Impacts of the Doha Development Agenda," World Bank Publications, The World Bank, number 7411, October.
  6. Seale, James L., Jr. & Regmi, Anita & Bernstein, Jason, 2003. "International Evidence On Food Consumption Patterns," Technical Bulletins 33580, United States Department of Agriculture, Economic Research Service.
  7. Andrew C. Harvey, 1990. "The Econometric Analysis of Time Series, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 026208189x, December.
  8. Jeffrey Reimer & Thomas Hertel, 2004. "Estimation of International Demand Behaviour for Use with Input-Output Based Data," Economic Systems Research, Taylor & Francis Journals, vol. 16(4), pages 347-366.
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Cited by:
  1. Hertel, Thomas W. & Steinbuks, Jevgenijs & Baldos, Uris Lantz C., 2012. "Competition for Land in the Global Bioeconomy," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 129614, International Association of Agricultural Economists.
  2. David Laborde & Simla Tokgoz & Lindsay Shutes & Hugo Valin, 2013. "Assessment framework and operational definitions for long-term scenarios," Working papers 14, LEI Wageningen UR.
  3. Alston, Julian M. & Pardey, Philip G., 2014. "Agricultural R&D, Food Prices, Poverty and Malnutrition Redux," Staff Papers 162413, University of Minnesota, Department of Applied Economics.
  4. Seale, James L. & Solano, Alexis A., 2012. "The changing demand for energy in rich and poor countries over 25years," Energy Economics, Elsevier, vol. 34(6), pages 1834-1844.

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