Effects of Health Information and Generic Advertising on U.S. Meat Demand

The dominant pattern in U.S. meat consumption over the past two decades has been a steady increase in per capita poultry consumption, largely at the expense of beef consumption. Our findings suggest that the major factor governing this pattern is structural change. Specifically, health information or trend was found to be significant in each of the four equations estimated in the Rotterdam system. Moreover, the health-information elasticities in general are larger in absolute value than price elasticities, which suggests that small percentage changes in health information have larger impacts on meat consumption than equivalently small percentage changes in relative prices. The estimated effects of generic advertising, in contrast, were found to be modest and fragile. Copyright 1997, Oxford University Press.