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An Econometric Model of the Demand for Food and Nutrition

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Author Info
Jeffrey LaFrance (University of California, Berkeley)

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Abstract

A flexible, full rank two model of food consumption that is globally consistent with economic theory, aggregates across income, demographic variables, and variations in micro demand parameters, and accommodates tradeoffs between tastes and nutrition is derived. The econometric demand model is estimated with per capita U.S. consumption of 21 foods on the time period 1919-1994, excluding the World War II years 1942-1946. An approach for inferring the percentage of nutrients available from individual commodities in the U.S. food supply is derived and implemented empirically on the time period 1949-1995 for the nutrients energy, protein, total fat, carbohydrates, and cholesterol. The two sets of model results are combined to generate time paths for income and Hicksian compensated price elasticities of demand for individual foods and macronutrients.

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Paper provided by Department of Agricultural & Resource Economics, UC Berkeley in its series Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series with number 885.

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Date of creation: 27 May 1999
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Handle: RePEc:cdl:agrebk:885

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Keywords: aggregation; demand; food; nutrition; Hicksian compensated price elasticities;

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References listed on IDEAS
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  1. Wu, De-Min, 1973. "Alternative Tests of Independence Between Stochastic Regressors and Disturbances," Econometrica, Econometric Society, vol. 41(4), pages 733-50, July. [Downloadable!] (restricted)
  2. Tobias, Justin & Zellner, Arnold, 2004. "Further Results on Bayesian Method of Moments Analysis of the Multiple Regression Model," Staff General Research Papers 12021, Iowa State University, Department of Economics.
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  3. Laitinen, Kenneth, 1978. "Why is demand homogeneity so often rejected?," Economics Letters, Elsevier, vol. 1(3), pages 187-191. [Downloadable!] (restricted)
  4. Stoker, Thomas M, 1993. "Empirical Approaches to the Problem of Aggregation Over Individuals," Journal of Economic Literature, American Economic Association, vol. 31(4), pages 1827-74, December. [Downloadable!] (restricted)
  5. Edgerton, David L., 1993. "On The Estimation Of Separable Demand Models," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 18(02), December. [Downloadable!]
  6. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November. [Downloadable!] (restricted)
  7. Blackorby, Charles & Donaldson, David & Moloney, David, 1984. "Consumer's Surplus and Welfare Change in a Simple Dynamic Model," Review of Economic Studies, Blackwell Publishing, vol. 51(1), pages 171-76, January. [Downloadable!] (restricted)
  8. Epstein, Larry G, 1982. "Integrability of Incomplete Systems of Demand Functions," Review of Economic Studies, Blackwell Publishing, vol. 49(3), pages 411-25, July. [Downloadable!] (restricted)
  9. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July. [Downloadable!] (restricted)
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  12. Blundell, Richard William, 1987. "Econometric Approaches to the Specification of Life-Cycle Labour Supply and Commodity Demand Behaviour," CEPR Discussion Papers 150, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  13. van Daal, Jan & Merkies, Arnold H Q M, 1989. "A Note on the Quadratic Expenditure Model," Econometrica, Econometric Society, vol. 57(6), pages 1439-43, November. [Downloadable!] (restricted)
  14. Howe, Howard & Pollak, Robert A & Wales, Terence J, 1979. "Theory and Time Series Estimation of the Quadratic Expenditure System," Econometrica, Econometric Society, vol. 47(5), pages 1231-47, September. [Downloadable!] (restricted)
  15. Buse, Adolf, 1992. "Aggregation, Distribution and Dynamics in the Linear and Quadratic Expenditure Systems," The Review of Economics and Statistics, MIT Press, vol. 74(1), pages 45-53, February. [Downloadable!] (restricted)
  16. Muellbauer, John, 1975. "Aggregation, Income Distribution and Consumer Demand," Review of Economic Studies, Blackwell Publishing, vol. 42(4), pages 525-43, October. [Downloadable!] (restricted)
  17. Engle, Robert F & Hendry, David F & Richard, Jean-Francois, 1983. "Exogeneity," Econometrica, Econometric Society, vol. 51(2), pages 277-304, March. [Downloadable!] (restricted)
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  18. Brown, Bryan W & Walker, Mary Beth, 1989. "The Random Utility Hypothesis and Inference in Demand Systems," Econometrica, Econometric Society, vol. 57(4), pages 815-29, July. [Downloadable!] (restricted)
  19. Attfield, Clifford L. F., 1985. "Homogeneity and endogeneity in systems of demand equations," Journal of Econometrics, Elsevier, vol. 27(2), pages 197-209, February. [Downloadable!] (restricted)
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Cited by:
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  1. Rashid, Dewan Arif & Smith, Lisa & Rahman, Tauhidur, 2006. "Determinants of Dietary Quality: Evidence from Bangladesh," 2006 Annual meeting, July 23-26, Long Beach, CA 21326, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  2. Paul Dunne & Beverly Edkins, 2005. "The demand for Food in South Africa," Discussion Papers 0509, University of the West of England, Department of Economics. [Downloadable!]
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