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Consumer Demand for Food Commodities in the United States with Projections for 1980


  • George, P.S.
  • King, Gordon A.


This study analyzes the demand for food commodities in the United States in the postwar period using both time-series and cross-section data. Income-consumption relationships are based on data from 1955 and 1965 USDA household food consumption surveys. The analysis co cross section data emphasized: (1) effects of grouping observations, (2) choice between expenditures are quantities as the dependent variable, (3) effects of household size on income-consumption relationships, (4) shifts in the regression coefficients (intercepts and income elasticities) between 1955 and 1965, and (5) regional variations in the income-consumption relationships. A demand interrelationship matrix was developed for 49 commodities or commodity groups at the retail level. Commodities were classified into 15 separable groups and all direct and cross elasticities for commodities within a group were estimated directly. The cross elasticities corresponding to commodities outside a given group were estimated through assumptions of cardinal separability. The synthesis of demand interrelationships was achieved by the use of restrictions on demand equations for an individual consumer as suggested by Frisch (1959) and quantified by Brandow (1961). Consideration also was given to the measurement of time trends on consumption. Marketing margins were analyzed and demand interrelationships were developed at the farm level. Projections of 1980 consumption per capita were developed for individual commodities and group aggregates. These projections are based on a specification of constant real prices, exogenous projections of real income per capita, and continuation of past time trends for certain commodities.

Suggested Citation

  • George, P.S. & King, Gordon A., 1971. "Consumer Demand for Food Commodities in the United States with Projections for 1980," Monographs, University of California, Davis, Giannini Foundation, number 11936.
  • Handle: RePEc:ags:dgiamo:11936

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    1. Li, Lan & Carman, Hoy F. & Sexton, Richard J., 2005. "Grocery Retailer Pricing Behavior for California Avocados with Implications for Industry Promotion Strategies," 2005 Annual meeting, July 24-27, Providence, RI 19498, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Beck, Robert L. & Mather, Loys L., 1976. "Price-Margin Movements In The Fluid Milk Industry," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 8(02), December.
    3. Spillers, Paul D. & Havlicek, Joseph, Jr., 1973. "A Simulation Analysis Of The Effects Of A Product Tax On The Packaging Waste Output Of Selected Food Products," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 5(02), December.
    4. Richardson, Robert A., 1976. "Structural Estimates Of Domestic Demand For Agricultural Products In Australia: A Review," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 44(03), September.
    5. Li, Chenguang & Sexton, Richard J., 2009. "Impacts of Retailers’ Pricing Strategies for Produce Commodities on Farmer Welfare," 2009 Conference, August 16-22, 2009, Beijing, China 51720, International Association of Agricultural Economists.
    6. Vassilopoulos, Achilleas & Klonaris, Stathis & Drichoutis, Andreas C. & Lazaridis, Panagiotis, 2012. "Modeling quality demand with data from Household Budget Surveys: An application to meat and fish products in Greece," Economic Modelling, Elsevier, vol. 29(6), pages 2744-2750.
    7. K. Balcombe & S. Davidova & J. A. Morrison, 1999. "Consumer Behaviour in a Country in Transition with a Strongly Contracting Economy: The Case of Food Consumption in Bulgaria," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 36-47.
    8. Tweeten, Luther G., 1980. "An Economic Investigation Into Inflation Passthrough To The Farm Sector," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 5(02), December.
    9. Abdou, Dyaa & Green, Richard, 1982. "Economies of Scale and Family Food Expenditure Patterns in Egypt," Working Papers 233040, University of California, Davis, Agricultural Development Systems: Egypt Project.
    10. Griffith, G.R., 2000. "Competition in the Food Marketing Chain," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 171911, Australian Agricultural and Resource Economics Society.
    11. Anonymous, 1985. "Proceeding of a Seminar Sponsored by Northcentral Regional Project NC-176, Northeastern Regional Project NE-153 Southern Regional Project S-166 "Dairy Modeling in the 1980's: A Symposium on Curre," Economics and Sociology Occasional Papers 243216, Ohio State University, Department of Agricultural, Environmental and Development Economics.
    12. Frank Asche & Ola Flaaten & John R. Isaksen & Terje Vassdal, 2002. "Derived Demand and Relationships between Prices at Different Levels in the Value Chain: A Note," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(1), pages 101-107.
    13. Redman, Barbara J., 1980. "Household Expenditure On Meat Versus Nonmeat Sources Of Protein In The United States," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(02), December.
    14. Wells, Gary J. & Thompson, C. Stassen & Miller, Stephen E., 1983. "An Examination of the Farm Level Demand for Pecans," Working Papers 116877, Clemson University, Department of Agricultural and Applied Economics.
    15. Byrne, Patrick J. & Capps, Oral, Jr. & Williams, Gary W., 1993. "U.S. Demand For Lamb: The Other Red Meat," Journal of Food Distribution Research, Food Distribution Research Society, vol. 24(1), February.
    16. Cooke, Stephen C. & Sundquist, W. Burt, 1987. "Cost Structures, Productivities and the Distribution of Technology Benefits Among Producers for Major U.S. Field Crops," Evaluating Agricultural Research and Productivity, Proceedings of a Workshop, Atlanta, Georgia, January 29-30, 1987, Miscellaneous Publication 52 50020, University of Minnesota, Agricultural Experiment Station.
    17. Griffith, Garry R., 2000. "Competition in the food marketing chain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), September.
    18. Ghosh, Somali & Williams, Gary W., 2015. "Returns to Stakeholders from the American Lamb Checkoff Program: A Supply Chain Analysis," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205413, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    19. Magrath, William B. & Tauer, Loren W., 1986. "The Economic Impact Of Bgh On The New York State Dairy Sector: Comparative Static Results," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 15(1), April.
    20. Grande, Jorunn & Houck, James P. & Olson, Kent D., 1994. "Projected Consumption Of Livestock Products," Staff Papers 13642, University of Minnesota, Department of Applied Economics.
    21. repec:ags:ucdegw:233040 is not listed on IDEAS
    22. Phillips, Mark & Hueth, Darrell L. & Just, Richard E., 1989. "Estimating Cost of Banning Agricultural Chemicals: The Case of Maneb and Maneb Alternatives," Working Papers 197631, University of Maryland, Department of Agricultural and Resource Economics.
    23. Johnson, S. R. & Safyurtlu, A. N., 1984. "A Demand Matrix for Major Food Commodities in Canada," Working Papers 243870, Agriculture and Agri-Food Canada.
    24. Dunn, James E. & Heien, Dale, 1985. "The Demand For Farm Output," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(01), July.
    25. Street, J.A., 1974. "Demand for Milk," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 42(02), June.


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