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Demand For Healthy Food In The United States

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  • Feng, Xudong
  • Chern, Wen S.

Abstract

This study investigates the demand for selected healthy food groups in the United States. The original linear approximate almost ideal demand system (LA/AIDS) is modified by the use of a Laspeyres index and a normalization in order to compute demand elasticities identically to the AIDS model. The results of this study suggest that poultry is the most price elastic while cereals are the least price elastic. Fresh fruits and fresh vegetables are more price elastic than processed fruits and processed vegetables. Increasing income would induce the increases in the consumption of fresh vegetables and fruits more than that of cereals and bakery products, while increasing health risk concerns would induce the decreases in the consumption of bakery products and poultry but the increases in the consumption of fresh vegetables and cereals. The demographic variables exhibit certain effects on the demand for some healthy food groups and seasonal fluctuations statistically exist in the consumption of all food groups under study.

Suggested Citation

  • Feng, Xudong & Chern, Wen S., 2000. "Demand For Healthy Food In The United States," 2000 Annual meeting, July 30-August 2, Tampa, FL 21857, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea00:21857
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    File URL: http://purl.umn.edu/21857
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    References listed on IDEAS

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    1. Giancarlo Moschini, 1995. "Units of Measurement and the Stone Index in Demand System Estimation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 63-68.
    2. Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-356, May.
    3. Adolf Buse, 1994. "Evaluating the Linearized Almost Ideal Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 781-793.
    4. William F. Hahn, 1994. "Elasticities in AIDS Models: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 972-977.
    5. Frank Asche & Cathy R. Wessells, 1997. "On Price Indices in the Almost Ideal Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1182-1185.
    6. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    7. Chung, Ching-Fan, 1993. "The measurement unit problem in estimating demand systems," Economics Letters, Elsevier, vol. 41(4), pages 373-377.
    8. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-359, June.
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    Cited by:

    1. Catherine Durham & James Eales, 2010. "Demand elasticities for fresh fruit at the retail level," Applied Economics, Taylor & Francis Journals, vol. 42(11), pages 1345-1354.
    2. 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).

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