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International Evidence On Food Consumption Patterns

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Author Info
Seale, James, Jr.
Regmi, Anita
Bernstein, Jason

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Abstract

The analysis presented here suggests that low-, middle-, and high-income countries all respond differently to changes in income and food prices and, furthermore that low-income countries are more responsive than high-income countries to such changes. These conclusions are based on a two-stage, cross-country demand system fit to the 1996 International Comparison Project (ICP) data for nine broad categories and eight food sub-categories of goods across 114 countries. The broad consumption groups include: food, beverage, and tobacco; clothing and footwear; education; gross rent, fuel, and power; house furnishings and operations; medical care; recreation; transport and communications; and other items. The food sub-groups include bread and cereals, meat, fish, dairy products, oils and fats, fruit and vegetables, beverages and tobacco, and other food products. The country data exhibit group heteroskedasticity, and a maximum likelihood procedure that corrects for group heteroskedasticity is developed and used to estimate the model. Theil's information inaccuracy measures are calculated to measure the goodness of fit of the system of equations, while Strobel measures are calculated to measure the goodness of fit on an individual equation basis. Using the estimated parameters, income and price elasticities are calculated

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Publisher Info
Paper provided by United States Department of Agriculture, Economic Research Service in its series Technical Bulletins with number 33580.

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Date of creation: 2003
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Handle: RePEc:ags:uerstb:33580

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Related research
Keywords: Consumption; cross-country demand; complete demand system; food demand; elasticity; heteroskedasticity; maximum likelihood; Food Consumption/Nutrition/Food Safety;

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  1. Fabiosa, Jacinto, 2006. "Growing Demand for Animal-Protein-Source Products in Indonesia: Trade Implications," 2006 Annual meeting, July 23-26, Long Beach, CA 21417, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  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). [Downloadable!]
  3. George Verikios, 2006. "Distribution of Research Gains in Multistage Production Systems: a General Equilibrium Analysis of Wool," Economics Discussion / Working Papers 06-02, The University of Western Australia, Department of Economics. [Downloadable!]
  4. Mashinini, Nkosazana, 2006. "Ross McLaren, Retired President and CEO, Shaw's Supermarket, Inc. - The Changing Consumer: Demanding but Predictable," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 9(02). [Downloadable!]
  5. George Verikios, 2004. "A Model of the World Wool Market," Economics Discussion / Working Papers 04-24, The University of Western Australia, Department of Economics. [Downloadable!]
  6. MacDonald, Stephen, 2007. "Progress and Problems Estimating China's Cotton Supply and Demand," Agricultural Outlook Forum 2007 8045, United States Department of Agriculture, Agricultural Outlook Forum. [Downloadable!]
  7. MacDonald, Stephen & Pan, Suwen & Somwaru, Agapi & Tuan, Francis, 2004. "Chinaâ’'S Role In World Cotton And Textile Markets," 2004 Annual meeting, August 1-4, Denver, CO 20054, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  8. Femenia, Fabienne & Gohin, Alexandre, 2007. "Estimating price elasticities of food trade functions: How relevant is the gravity approach?," Working Papers 7211, TRADEAG - Agricultural Trade Agreements. [Downloadable!]
  9. Mark Brown & Jonq-Ying Lee, 2008. "Impacts of the distribution of households across income groups in a differential demand system for orange juice," Empirical Economics, Springer, vol. 34(3), pages 567-584, June. [Downloadable!] (restricted)
  10. Parra, Juan Carlos & Wodon, Quentin, 2008. "Comparing the impact of food and energy price shocks on consumers : a social accounting matrix analysis for Ghana," Policy Research Working Paper Series 4741, The World Bank. [Downloadable!]
  11. Grace Chua Ee Lin, 2003. "Food and Cross-Country Income Comparisons," Economics Discussion / Working Papers 03-14, The University of Western Australia, Department of Economics. [Downloadable!]
  12. Dessus, Sebastien & Herrera, Santiago & de Hoyos, Rafael, 2008. "The impact of food inflation on urban poverty and its monetary cost : some back-of-the-envelope calculations," Policy Research Working Paper Series 4666, The World Bank. [Downloadable!]
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  13. Kenneth W. Clements & Yanrui Wu & Jing Zhang, 2004. "Comparing International Consumption Patterns," Economics Discussion / Working Papers 04-04, The University of Western Australia, Department of Economics. [Downloadable!]
  14. Mitchell, Lorraine, 2006. "Variety, Agricultural Trade, and Income," 2006 Annual meeting, July 23-26, Long Beach, CA 21246, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  15. Witzke, Heinz Peter & Tonini, Axel, 2008. "Dairy reform scenarios with CAPSIM acknowledging quota rent uncertainty," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43654, European Association of Agricultural Economists. [Downloadable!]
  16. Shiyuan Chen & Sally Wallace, 2009. "Food Consumption in Jamaica: A Household and Social Behavior," International Studies Program Working Paper Series, at AYSPS, GSU paper0901, International Studies Program, Andrew Young School of Policy Studies, Georgia State University. [Downloadable!]
  17. Gehlhar, Mark & Dohlman, Erik, 2006. "Macroeconomic and Global Growth Influences on the U.S. Agricultural Trade Balance," 2006 Annual meeting, July 23-26, Long Beach, CA 21324, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  18. George Verikios, 2006. "Understanding the World Wool Market: Trade, Productivity and Grower Incomes. Part 4: Model Data and Parameters," Economics Discussion / Working Papers 06-22, The University of Western Australia, Department of Economics. [Downloadable!]
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