IDEAS home Printed from https://ideas.repec.org/a/aea/aecrev/v103y2013i5p1629-63.html
   My bibliography  Save this article

Trade, Tastes, and Nutrition in India

Author

Listed:
  • David Atkin

Abstract

This paper explores the causes and consequences of regional taste differences. I introduce habit formation into a standard general equilibrium model. Household tastes evolve over time to favor foods consumed as a child. Thus, locally abundant foods are preferred in every region, as they were relatively inexpensive in prior generations. These patterns alter the correspondence between price changes and nutrition. For example, neglecting this relationship between tastes and agro-climatic endowments overstates the short-run nutritional gains from agricultural trade liberalization, since preferred foods rise in price in every region. I examine the model's predictions using household survey data from many regions of India.

Suggested Citation

  • David Atkin, 2013. "Trade, Tastes, and Nutrition in India," American Economic Review, American Economic Association, vol. 103(5), pages 1629-1663, August.
  • Handle: RePEc:aea:aecrev:v:103:y:2013:i:5:p:1629-63
    Note: DOI: 10.1257/aer.103.5.1629
    as

    Download full text from publisher

    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.103.5.1629
    Download Restriction: no

    File URL: http://www.aeaweb.org/aer/data/aug2013/20091244_data.zip
    Download Restriction: no

    File URL: http://www.aeaweb.org/aer/data/aug2013/20091244_app.pdf
    Download Restriction: no

    File URL: http://www.aeaweb.org/aer/ds/august2013/20091244_ds.zip
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
    2. Brian W. Gould, 2003. "An Empirical Assessment of Endogeneity Issues in Demand Analysis for Differentiated Products," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(3), pages 605-617.
    3. Dietrich Vollrath, 2011. "The agricultural basis of comparative development," Journal of Economic Growth, Springer, vol. 16(4), pages 343-370, December.
    4. John Kennan, 1989. "Simultaneous Equations Bias in Disaggregated Econometric Models," Review of Economic Studies, Oxford University Press, vol. 56(1), pages 151-156.
    5. James Melvin & Robert Waschik, 2001. "The neoclassical ambiguity in the specific factor model," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(3), pages 321-337.
    6. Jerry A. Hausman, 1996. "Valuation of New Goods under Perfect and Imperfect Competition," NBER Chapters, in: The Economics of New Goods, pages 207-248, National Bureau of Economic Research, Inc.
    7. Prema-Chandra Athukorala, 2005. "Agricultural Trade Policy Reforms in India," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 6(1), pages 23-36, March.
    8. Raghbendra Jha & K. V. Bhanu Murthy & Anurag Sharma, 2008. "Market Integration in Wholesale Rice Markets in India," Palgrave Macmillan Books, in: Raghbendra Jha (ed.), The Indian Economy Sixty Years After Independence, chapter 13, pages 233-246, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dunn, Abe, 2016. "Health insurance and the demand for medical care: Instrumental variable estimates using health insurer claims data," Journal of Health Economics, Elsevier, vol. 48(C), pages 74-88.
    2. Ghazaryan, Armen & Bonanno, Alessandro & Carlson, Andrea, 2022. "I Say Milk, You Say Mylk. Demand Separability in a Broadened Milk Category," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, May.
    3. Aviv Nevo, 2000. "A Practitioner's Guide to Estimation of Random‐Coefficients Logit Models of Demand," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 9(4), pages 513-548, December.
    4. Dhar, Tirtha Pratim & Chavas, Jean-Paul & Cotterill, Ronald W., 2003. "An Economic Analysis of Product Differentiation under Latent Separability," 2003 Annual meeting, July 27-30, Montreal, Canada 21892, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Madhusudan Ghosh, 2011. "Agricultural Policy Reforms And Spatial Integration Of Food Grain Markets In India," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(2), pages 15-37, June.
    6. Pugatch, Todd & Wilson, Nicholas, 2018. "Nudging study habits: A field experiment on peer tutoring in higher education," Economics of Education Review, Elsevier, vol. 62(C), pages 151-161.
    7. Emanuele Forlani & Elisabetta Lodigiani & Concetta Mendolicchio, 2015. "Impact of Low-Skilled Immigration on Female Labour Supply," Scandinavian Journal of Economics, Wiley Blackwell, vol. 117(2), pages 452-492, April.
    8. Donna, Javier D. & Pereira, Pedro & Trindade, Andre & Yoshida, Renan C., 2020. "Direct-to-Consumer Sales by Manufacturers and Bargaining," MPRA Paper 105773, University Library of Munich, Germany.
    9. Arnaud Chevalier & Colm Harmon & Vincent O’ Sullivan & Ian Walker, 2013. "The impact of parental income and education on the schooling of their children," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-22, December.
    10. Allais, Olivier & Leroy, Pascal & Mink, Julia, 2020. "Changes in food purchases at retirement in France," Food Policy, Elsevier, vol. 90(C).
    11. Hilber, Christian A.L., 2010. "New housing supply and the dilution of social capital," Journal of Urban Economics, Elsevier, vol. 67(3), pages 419-437, May.
    12. W. Erwin Diewert & Robert C. Feenstra, 2021. "Estimating the Benefits of New Products," NBER Chapters, in: Big Data for Twenty-First-Century Economic Statistics, pages 437-473, National Bureau of Economic Research, Inc.
    13. Keith Head & Thierry Mayer, 2008. "Detection Of Local Interactions From The Spatial Pattern Of Names In France," Journal of Regional Science, Wiley Blackwell, vol. 48(1), pages 67-95, February.
    14. Redding, Stephen J. & Weinstein, David E., 2016. "A unified approach to estimating demand and welfare," LSE Research Online Documents on Economics 67681, London School of Economics and Political Science, LSE Library.
    15. Asadul Islam & Dietrich K. Fausten, 2008. "Skilled Immigration and Wages in Australia," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 66-82, September.
    16. Pascal Petit, 2010. "Innovation and Services: On Biases and Beyond," Chapters, in: Faïz Gallouj & Faridah Djellal (ed.), The Handbook of Innovation and Services, chapter 17, Edward Elgar Publishing.
    17. Munasib, Abdul B.A. & Jordan, Jeffrey L., 2011. "The Effect of Social Capital on the Choice to Use Sustainable Agricultural Practices," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(2), pages 1-15, May.
    18. Grimm, M. & Klasen, S., 2007. "Geography vs. Institutions at the Village Level," ISS Working Papers - General Series 18745, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    19. Lurkin, Virginie & Garrow, Laurie A. & Higgins, Matthew J. & Newman, Jeffrey P. & Schyns, Michael, 2017. "Accounting for price endogeneity in airline itinerary choice models: An application to Continental U.S. markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 100(C), pages 228-246.
    20. Doko Tchatoka, Firmin Sabro, 2012. "Specification Tests with Weak and Invalid Instruments," MPRA Paper 40185, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. Trade, Tastes, and Nutrition in India (AER 2013) in ReplicationWiki

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aecrev:v:103:y:2013:i:5:p:1629-63. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.