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Food expenditures and household demographic composition in the US: a demand systems approach

Author

Listed:
  • Kellie Curry Raper
  • Maria Namakhoye Wanzala
  • Rodolfo Nayga

Abstract

Food expenditures and subsistence quantities of poverty status and non-poverty status US households are analysed within a Linear Expenditure System that postulates subsistence quantities to be linear combinations of demographic variables. Using the US Bureau of Labor Statistics' 1992 Consumer Expenditure Survey and Detailed Monthly Consumer Price Indices, this article obtains expenditure elasticities, own-price elasticities and subsistence quantities for each income group across nine broadly aggregated food commodity groups. Elasticity estimates and subsistence quantity estimates differ across income groups, supporting the premise that policies targeted at specific income groups should be based on the target group's elasticity estimates rather than average population elasticities. Parameter estimates are then used to simulate how subsistence quantities and own-price elasticities can be expected to vary according to the demographic composition of the household within a specific income group.

Suggested Citation

  • Kellie Curry Raper & Maria Namakhoye Wanzala & Rodolfo Nayga, 2002. "Food expenditures and household demographic composition in the US: a demand systems approach," Applied Economics, Taylor & Francis Journals, vol. 34(8), pages 981-992.
  • Handle: RePEc:taf:applec:v:34:y:2002:i:8:p:981-992
    DOI: 10.1080/00036840110061959
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    Cited by:

    1. Boonsaeng, Tullaya & Carpio, Carlos E. & Zhen, Chen & Okrent, Abigail M., 2012. "The Effect of Supplemental Nutrition Assistance Program on Food Spending Among Low-Income Households," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124839, Agricultural and Applied Economics Association.
    2. Ariel Casarin, 2014. "Regulated price reforms and unregulated substitutes: the case of residential piped gas in Argentina," Journal of Regulatory Economics, Springer, vol. 45(1), pages 34-56, February.
    3. Lusk, Jayson L. & Norwood, F. Bailey, 2009. "Some Economic Benefits and Costs of Vegetarianism," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), October.
    4. Biing-Hwan Lin & Steven T. Yen & Diansheng Dong & David M. Smallwood, 2010. "Economic Incentives For Dietary Improvement Among Food Stamp Recipients," Contemporary Economic Policy, Western Economic Association International, vol. 28(4), pages 524-536, October.
    5. Leffler, Kristyn K. & Carpio, Carlos E. & Boonsaeng, Tullaya, 2012. "Temporal Aggregation and Treatment of Zero Dependent Variables in the Estimation of Food Demand using Cross-Sectional Data," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124913, Agricultural and Applied Economics Association.
    6. Zhao, Zhenxiang & Kaestner, Robert & Xu, Xin, 2014. "Spatial mobility and environmental effects on obesity," Economics & Human Biology, Elsevier, vol. 14(C), pages 128-140.
    7. Maria Erlinda M. Mutuc & Suwen Pan & Roderick M. Rejesus, 2007. "Household vegetable demand in the Philippines: Is there an urban-rural divide?," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 511-527.
    8. Tonsor, Glynn T. & Kastens, Terry L., 2006. "How Much Do Starting Values Really Matter? An Empirical Comparison of Genetic Algorithm and Traditional Approaches," 2006 Annual meeting, July 23-26, Long Beach, CA 21252, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Okrent, Abigail M. & Alston, Julian M., 2012. "The Demand for Disaggregated Food-Away-from-Home and Food-at-Home Products in the United States," Economic Research Report 132469, United States Department of Agriculture, Economic Research Service.
    10. Smed, Sinne & Jensen, Jorgen D. & Denver, Sigrid, 2007. "Socio-economic characteristics and the effect of taxation as a health policy instrument," Food Policy, Elsevier, vol. 32(5-6), pages 624-639.
    11. Yen, Steven T. & Lin, Biing-Hwan & Harris, James Michael & Ballenger, Nicole, 2004. "Demand For Differentiated Vegetables," 2004 Annual meeting, August 1-4, Denver, CO 20059, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    12. Carpio, Carlos E. & Boonsaeng, Tullaya & Chen, Zhen & Okrent, Abigail, 2014. "The Effect of Supplemental Nutrition Assistance Program on Food and Nonfood Spending Among Low-Income Households," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170650, Agricultural and Applied Economics Association.
    13. Panagiotis Lazaridis, 2004. "Demand elasticities derived from consistent estimation of Heckman-type models," Applied Economics Letters, Taylor & Francis Journals, vol. 11(8), pages 523-527.
    14. Javier García-Enríquez & Cruz A. Echevarría, 2016. "Consistent Estimation of a Censored Demand System and Welfare Analysis: The 2012 VAT Reform in Spain," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 324-347, June.
    15. Zhuo Chen & Steven Yen, 2005. "On bias correction in the multivariate sample-selection model," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2459-2468.
    16. Timothy K. M. Beatty, 2008. "Expenditure dispersion and dietary quality: evidence from Canada," Health Economics, John Wiley & Sons, Ltd., vol. 17(9), pages 1001-1014.
    17. César E. Castellón & Tullaya Boonsaeng & Carlos E. Carpio, 2015. "Demand system estimation in the absence of price data: an application of Stone-Lewbel price indices," Applied Economics, Taylor & Francis Journals, vol. 47(6), pages 553-568, February.
    18. Blisard, Noel & Stewart, Hayden & Jolliffe, Dean, 2004. "Low-Income Households' Expenditures on Fruits and Vegetables," Agricultural Information Bulletins 33755, United States Department of Agriculture, Economic Research Service.
    19. Boonsaeng, Tullaya & Carpio, Carlos E., 2015. "Data Collection Period and Food Demand System Estimation using Cross Sectional Data," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205576, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    20. Tonsor, Glynn T. & Marsh, Thomas L., 2005. "Comparing Heterogeneous Consumption in US and Japanese Meat and Fish Demand," 2005 Annual meeting, July 24-27, Providence, RI 19567, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908.

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