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The Structure of US Food Demand

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  • Jeffrey LaFrance

    ()
    (School of Economic Sciences, Washington State University)

Abstract

An exactly aggregable system of Gorman Engel curves for U.S. food consumption is developed and implemented. Box-Cox transformations on prices and income nest functional form. The model nests rank up to rank three. The model is estimated by nonlinear three-stage least squares with annual time series data on 21 foods, 17 nutrients, age and race demographics, and the distribution of income for 1919-1941 and 1947-2000. Results are consistent with full rank three. Point estimates for the Box-Cox parameters on income and prices are 0.86 and 1.09, respectively, strongly rejecting zero and one in both cases. No statistical evidence of serial correlation, specification errors, or parameter instability is found.

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File URL: http://faculty.ses.wsu.edu/WorkingPapers/LaFrance/JTL-SUSFD-Preprint.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2008-10.

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Length: 33 pages
Date of creation: Aug 2008
Date of revision:
Handle: RePEc:wsu:wpaper:lafrance-1

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Keywords: Aggregation; food demand; functional form; parameter stability; rank; specification errors;

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References

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Citations

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Cited by:
  1. Hayley H. Chouinard & David E. Davis & Jeffrey LaFrance & Jeffrey M. Perloff, 2008. "Milk Marketing Order Winners and Losers," Working Papers 2009-03, School of Economic Sciences, Washington State University.
  2. Jesse Tack & Rulon Pope & Jeffrey LaFrance & Ricardo Cavazos, 2012. "Flexible Specification and Robust Estimation of Input Demand Systems," Development Research Unit Working Paper Series 48-12, Monash University, Department of Economics.
  3. Alston, Julian M. & Balagtas, Joseph Valdes & Brunke, Henrich & Sumner, Daniel A., 2006. "Supply and demand for commodity components: implications of free trade versus the AUSFTA for the US dairy industry," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), June.
  4. Jeffrey LaFrance, 2008. "The Structure of US Food Demand," Working Papers 2008-10, School of Economic Sciences, Washington State University.
  5. Piggott, Nicholas E. & Marsh, Thomas L., 2001. "Impacts of Food Safety on U.S. Meat Demand," 2001 Conference (45th), January 23-25, 2001, Adelaide 125781, Australian Agricultural and Resource Economics Society.
  6. Jesse Tack & Rulon Pope & Jeffrey LaFrance & Timothy Graciano & Scott Colby, 2012. "Intertemporal Risk Management in Agriculture," Development Research Unit Working Paper Series 16-12, Monash University, Department of Economics.
  7. LaFrance, Jeffrey T. & Beatty, Timothy K. M. & Pope, Rulon D, 2004. "Building Gorman's nest," CUDARE Working Paper Series 0961, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
  8. Jeffrey LaFrance & Rulon Pope, 2008. "The Generalized Quadratic Expenditure System," Working Papers 2008-27, School of Economic Sciences, Washington State University.

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