More or Better ? Measuring Quality versus Quantity in Food Consumption
AbstractAs people become richer they get the opportunity of consuming more but also qualitatively better goods. This holds for a basic commodity like food as well. We investigate food consumption in Russia, taking into account both expenditure and nutrition value in terms of calories. We analyze how food consumption patterns change with increasing income by estimating both "quantity Engel curves" and "quality Engel curves". The former describe the functional dependence of calories consumed on total expenditure. The latter trace out the dependence of price per calorie as a proxy for quality on total expenditure. We compare income elasticities of quantity with income elasticities of quality. In these Russian data for years 2000-2002 the reaction of quality to changes in income is significantly stronger than the reaction of quantity to income changes suggesting that Russian households tend to choose higher quality food items as income rises.
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Bibliographic InfoPaper provided by Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy in its series LEM Papers Series with number 2009/17.
Date of creation: 12 Nov 2009
Date of revision:
Food consumption patterns; calorie intake; income elasticity decomposition; Engel curves; method of average derivatives;
Other versions of this item:
- Corinna Manig & Alessio Moneta, 2009. "More Or Better? Measuring Quality Versus Quantity In Food Consumption," Papers on Economics and Evolution 2009-13, Max Planck Institute of Economics, Evolutionary Economics Group.
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-11-14 (Agricultural Economics)
- NEP-ALL-2009-11-14 (All new papers)
- NEP-TRA-2009-11-14 (Transition Economics)
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