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Modeling physical quantities of food and nutrients consumed from aggregate data-with an application to Finland

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  • Xavier Irz

Abstract

Anticipating the impact of changes in economic incentives on dietary quality and nutritional health requires knowledge of how physical quantities of food consumed respond to price and income variations. A problem arises, however, because physical quantities are: (1) not consistent aggregates in demand models; and (2) not measured at final/retail level in national statistics. The article develops a solution by establishing explicitly the theoretical link between composite demand and physical quantities, from which a novel empirical approach to the estimation of nutrient elasticities is derived. It is applied to Finnish aggregate data from the National Accounts and Food Balance Sheets over the 1975-2006 period, and the results are used to assess the potential effectiveness of several incentive-based nutritional policy instruments. Copyright (c) 2010 International Association of Agricultural Economists.

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  • Xavier Irz, 2010. "Modeling physical quantities of food and nutrients consumed from aggregate data-with an application to Finland," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3-4), pages 293-304, May.
  • Handle: RePEc:bla:agecon:v:41:y:2010:i:3-4:p:293-304
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    Cited by:

    1. Härkänen, Tommi & Kotakorpi, Kaisa & Pietinen, Pirjo & Pirttilä, Jukka & Reinivuo, Heli & Suoniemi, Ilpo, 2014. "The welfare effects of health-based food tax policy," Food Policy, Elsevier, vol. 49(P1), pages 196-206.

    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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