U.S. Demand for Food and Nutrition in the 20th Century
AbstractA 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 1919â€“-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 modelâ€™s parameters consistently using aggregate data. This model is estimated with 0Â° 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.
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Bibliographic InfoPaper provided by Department of Agricultural & Resource Economics, UC Berkeley in its series Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series with number qt41f3z7cd.
Date of creation: 01 Aug 2005
Date of revision:
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Aggregation; Agricultural Policy; Food Demand; Gorman Engel Curves; Nutrition; Agriculture; Agriculture Operations; and Related Sciences;
Other versions of this item:
- Beatty, Timothy K. M. & LaFrance, Jeffrey T, 2005. "U.S. demand for food and nutrition in the 20th century," CUDARE Working Paper Series 1002R, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy, revised Aug 2005.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wu, Ximing, 2003. "Calculation of maximum entropy densities with application to income distribution," Journal of Econometrics, Elsevier, vol. 115(2), pages 347-354, August.
- LaFrance, Jeffrey T., 2004. "Integrability of the linear approximate almost ideal demand system," Economics Letters, Elsevier, vol. 84(3), pages 297-303, September.
- Jeffrey T. LaFrance & Timothy K. Beatty & Rulon D. Pope, 2006. "Gorman Engel Curves for Incomplete Demand Systems," Monash Economics Working Papers archive-23, Monash University, Department of Economics.
- 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).
- 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.
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