IDEAS home Printed from https://ideas.repec.org/a/bpj/fhecpo/v15y2012i2n4.html
   My bibliography  Save this article

Nutrient Demand in Food Away from Home

Author

Listed:
  • Richards Timothy J.

    () (Arizona State University at the Te mpe Campus)

  • Mancino Lisa

    () (Economic Research Service, USDA)

  • Nganje William

    () (Arizona State University)

Abstract

Food away from home (FAFH) and, specifically fast food, has been targeted by academics and public policy officials alike as a major contributor to the obesity epidemic. Criticized as high in energy, fat and sugars, the implication is that consumers demand the combination of nutrients in FAFH in excess. If market-based policies intended to correct the perceived market failure in nutrient demand are to be successful, information on nutrient elasticities is required. Moreover, co-dependent relationships between nutrient intake and bioeconomic outcomes – obesity, physical activity and health status – are found to be important in the public health literature, but are not typically included in econometric studies of FAFH demand. Nutrients, however, do not have market prices. This study derives a set of implicit nutrient prices and estimates the elasticities of demand for nutrients in FAFH that takes into account the endogeneity of bioeconomic outcomes. Our estimation results show that fat is the only macro-nutrient that is elastic in demand, and all cross-price elasticities are small, so nutrient-based price policies may indeed be effective in modifying FAFH choices. Simulation results confirm this hypothesis, and also support the use of policies that subsidize positive health outcomes.

Suggested Citation

  • Richards Timothy J. & Mancino Lisa & Nganje William, 2012. "Nutrient Demand in Food Away from Home," Forum for Health Economics & Policy, De Gruyter, vol. 15(2), pages 1-31, April.
  • Handle: RePEc:bpj:fhecpo:v:15:y:2012:i:2:n:4
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/fhep.2012.15.issue-2/1558-9544.1246/1558-9544.1246.xml?format=INT
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Margaret E. Slade, 2004. "Market Power and Joint Dominance in U.K. Brewing," Journal of Industrial Economics, Wiley Blackwell, vol. 52(1), pages 133-163, March.
    2. Burkhauser, Richard V. & Cawley, John, 2008. "Beyond BMI: The value of more accurate measures of fatness and obesity in social science research," Journal of Health Economics, Elsevier, vol. 27(2), pages 519-529, March.
    3. Timothy K.M. Beatty & Jeffrey T. LaFrance, 2005. "United States Demand for Food and Nutrition in the Twentieth Century," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(5), pages 1159-1166.
    4. Timothy J. Richards & Luis Padilla, 2009. "Promotion and Fast Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 168-183.
    5. Stewart, Hayden & Blisard, Noel & Jolliffe, Dean & Bhuyan, Sanjib, 2005. "The Demand for Food Away from Home: Do Other Preferences Compete with Our Desire to Eat Healthfully?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 3), pages 1-17, December.
    6. Michael L. Anderson & David A. Matsa, 2011. "Are Restaurants Really Supersizing America?," American Economic Journal: Applied Economics, American Economic Association, vol. 3(1), pages 152-188, January.
    7. Chou, Shin-Yi & Grossman, Michael & Saffer, Henry, 2004. "An economic analysis of adult obesity: results from the Behavioral Risk Factor Surveillance System," Journal of Health Economics, Elsevier, vol. 23(3), pages 565-587, May.
    8. Kelejian, Harry H & Prucha, Ingmar R, 1998. "A Generalized Spatial Two-Stage Least Squares Procedure for Estimating a Spatial Autoregressive Model with Autoregressive Disturbances," The Journal of Real Estate Finance and Economics, Springer, vol. 17(1), pages 99-121, July.
    9. Pollak, Robert A & Wachter, Michael L, 1975. "The Relevance of the Household Production Function and Its Implications for the Allocation of Time," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 255-277, April.
    10. Jayachandran Variyam & James Blaylock & David Smallwood, 1999. "Information, endogeneity, and consumer health behaviour: application to dietary intakes," Applied Economics, Taylor & Francis Journals, vol. 31(2), pages 217-226.
    11. Cardell, N. Scott, 1997. "Variance Components Structures for the Extreme-Value and Logistic Distributions with Application to Models of Heterogeneity," Econometric Theory, Cambridge University Press, vol. 13(02), pages 185-213, April.
    12. Barnett, William A, 1977. "Pollak and Wachter on the Household Production Function Approach," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 1073-1082, October.
    13. Schroeter, Christiane & Lusk, Jayson & Tyner, Wallace, 2008. "Determining the impact of food price and income changes on body weight," Journal of Health Economics, Elsevier, vol. 27(1), pages 45-68, January.
    14. Currie, Janet & DellaVigna, Stefano & Moretti, Enrico & Pathania, Vikram, 2009. "The Effect of Fast Food Restaurants on Obesity," Working Papers 47830, American Association of Wine Economists.
    15. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
    16. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
    17. Variyam, Jayachandran N., 2005. "Nutrition Labeling in the Food-Away-From-Home Sector: An Economic Assessment," Economic Research Report 7235, United States Department of Agriculture, Economic Research Service.
    18. Kuo S. Huang, 1996. "Nutrient Elasticities in a Complete Food Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 21-29.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Smed, Sinne & Hansen, Lars Garn, 2018. "Consumer Valuation of Health Attributes in Food," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Number 2), May.
    2. repec:eee:joreco:v:31:y:2016:i:c:p:32-42 is not listed on IDEAS

    More about this item

    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:bpj:fhecpo:v:15:y:2012:i:2:n:4. 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: (Peter Golla). General contact details of provider: https://www.degruyter.com .

    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 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.

    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.