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Calorie Elasticities with Income Dynamics: Evidence from the Literature

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  • De Zhou
  • Xiaohua Yu

Abstract

This paper proposes a finite mixture model to identify the behavioral transition of calorie consumption with an assumption that nutrition consumption is a mixture of behaviors in two different stages: a poor stage and an affluent stage. Based on a meta-analysis of 387 calorie-income elasticities collected from 90 primary studies, it is found that the threshold income for calorie demand transition is $460 in 2012 prices. This implies that the transitional threshold for calorie consumption is $1.26/day, which is slightly lower than the World Bank's poverty line ($1.25/day in 2005 purchasing power parity prices) after deflation. This study provides a new empirical approach to evaluate the transition of calorie consumption and poverty line.

Suggested Citation

  • De Zhou & Xiaohua Yu, 2015. "Calorie Elasticities with Income Dynamics: Evidence from the Literature," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(4), pages 575-601.
  • Handle: RePEc:oup:apecpp:v:37:y:2015:i:4:p:575-601.
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    Cited by:

    1. Santeramo, Fabio Gaetano & Carlucci, Domenico & De Devitiis, Biagia & Seccia, Antonio & Stasi, Antonio & Viscecchia, Rosaria & Nardone, Gianluca, 2017. "Emerging trends in European food, diets and food industry," MPRA Paper 82105, University Library of Munich, Germany.
    2. Santeramo, Fabio Gaetano & Shabnam, Nadia, 2015. "The income-elasticity of calories, macro and micro nutrients: What is the literature telling us?," MPRA Paper 63754, University Library of Munich, Germany.
    3. Arsham Reisinezhad, 2018. "Economic Growth and Income Inequality in Resource Countries: Theory and Evidence," PSE Working Papers halshs-01707976, HAL.
    4. François Gardes & Noël Thiombiano, 2017. "The value of time and expenditures of rural households in Burkina Faso: a domestic production framework," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01535172, HAL.
    5. Patricia C Melo & Yakubu Abdul-Salam & Deborah Roberts & Alana Gilbert & Robin Matthews & Liesbeth Colen & Sergio Gomez Y Paloma, 2015. "Income Elasticities of Food Demand in Africa: A Meta-Analysis," JRC Working Papers JRC98812, Joint Research Centre (Seville site).
    6. Melo, P. C. & Abdul-Salam, Yakubu & Roberts, D. & Colen, L. & Mary, S. & Gomez Y Paloma, S., 2016. "Income growth and malnutrition in Africa: Is there a need for region-specific policies?," 90th Annual Conference, April 4-6, 2016, Warwick University, Coventry, UK 236372, Agricultural Economics Society.
    7. François Gardes & Noël Thiombiano, 2017. "The value of time and expenditures of rural households in Burkina Faso: a domestic production framework," Documents de travail du Centre d'Economie de la Sorbonne 17027, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    8. Xiaohua Yu & Satoru Shimokawa, 2016. "Nutritional impacts of rising food prices in African countries: a review," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(5), pages 985-997, October.
    9. Tian, Xu & Yu, Xiaohua, 2015. "Using semiparametric models to study nutrition improvement and dietary change with different indices: The case of China," Food Policy, Elsevier, vol. 53(C), pages 67-81.

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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