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U.S. demand for food and nutrition in the 20th century

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Author Info

  • Beatty, Timothy K. M.
  • LaFrance, Jeffrey T

    (University of California, Berkeley. Dept of agricultural and resource economics and policy)

Abstract

A great deal of research on farm and food policy and consumer choice focuses on the link between food consumption and nutrition. This paper presents and applies a new method to analyze the demand for food and nutrients, and consumer welfare. The foundation for this method is the recent extension of the Gorman class of exactly aggregable demand models to incomplete demand systems. The purposes of this approach are to derive and implement coherent, flexible empirical models of food and nutrient demand, to estimate the model parameters consistently with aggregate data, and to make inferences on the impacts of farm and food policy changes on food and nutrient demand and consumer welfare of those policies. We apply this framework to annual per capita U.S. demand for food and nutrients 1919–-2000, excluding 1942-1946 to account for World War II. The empirical model is an incomplete system of Gorman Engel curves that is nonlinear in income. This class of demand models generates theoretically consistent, exactly aggregable systems of demand equations for which only a small number of summary statistics for the distribution of income are required to estimate the model’s parameters consistently using aggregate data. This model is estimated with 0° homogeneity, monotonicity, symmetry, and a negative semidefinite Slutsky matrix imposed globally, so that the results can be used directly for economic analyses. A complete time series of price and income elasticities of food and nutrient demand are obtained for the sample period.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by University of California at Berkeley, Department of Agricultural and Resource Economics and Policy in its series CUDARE Working Paper Series with number 1002R.

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Length: 20 pages
Date of creation: May 2005
Date of revision: Aug 2005
Publication status: Published in American Journal of Agricultural Economics (2005): 1159-1166
Handle: RePEc:are:cudare:1002r

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Related research

Keywords: agricultural policies; food consumption; food policy; Gorman Engel curves; nutrition;

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References

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  1. LaFrance, Jeffrey T., 2004. "Integrability of the linear approximate almost ideal demand system," Economics Letters, Elsevier, vol. 84(3), pages 297-303, September.
  2. Jeffrey T. LaFrance & Timothy K. Beatty & Rulon D. Pope, 2006. "Gorman Engel Curves for Incomplete Demand Systems," Development Research Unit Working Paper Series archive-23, Monash University, Department of Economics.
  3. Wu, Ximing, 2003. "Calculation of maximum entropy densities with application to income distribution," Journal of Econometrics, Elsevier, vol. 115(2), pages 347-354, August.
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Citations

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Cited by:
  1. Allais, Olivier & Bertail, Patrice & Nichele, Veronique, 2008. "The Effects of a "Fat Tax" on the Nutrient Intake of French Households," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43967, European Association of Agricultural Economists.
  2. Mabiso, Athur & Weatherspoon, Dave D., 2008. "Fuel and Food Tradeoffs: A Preliminary Analysis of South African Food Consumption Patterns," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6126, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Timothy K.M. Beatty, 2007. "Recovering the Shadow Value of Nutrients," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 52-62.
  4. Suwen Pan & Cheng Fang & Roderick Rejesus, 2009. "Food Calorie Intake under Grain Price Uncertainty in Rural Nepal," Journal of Family and Economic Issues, Springer, vol. 30(2), pages 137-148, June.
  5. Irz, Xavier T., 2009. "Modelling physical quantities of food and nutrients consumed from aggregate data – with an application to Finland," 2009 Conference, August 16-22, 2009, Beijing, China 50324, International Association of Agricultural Economists.
  6. Olivier Allais & Patrice Bertail & Véronique Nichèle, 2010. "The Effects of a Fat Tax on French Households' Purchases: A Nutritional Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 228-245.
  7. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Working Papers 162515, Robert Mondavi Institute Center for Wine Economics.

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