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The Demand for Disaggregated Food-Away-from-Home Products

Author

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  • Okrent, Abigail M.
  • Alston, Julian M.

Abstract

Food away from home (FAFH) is an important component of the demand for food and hence, the nutritional intake of adults and children in the United States. Hence, policies designed to influence nutritional outcomes should address the role of FAFH. However, most studies of the response of demand for food to policy changes have ignored the role of FAFH, which means the estimates must be biased, while those studies that have included FAFH have treated it as a single good, giving rise to potential aggregation biases. In this study we estimate a demand system including a FAFH and alcoholic beverages composite (i.e., the aggregate of the three products modeled in the second stage), along with nine food at home (FAH) products (cereals and bakery products, dairy, red meat, poultry, fish, eggs, fruits and vegetables, other foods, and nonalcoholic beverages), and a nonfood composite. We also model allocations within the FAFH and alcoholic beverages composite, treating it as the second stage of a two-stage budgeting process. We estimate the demand for two FAFH products: food from full-service restaurants and other FAFH (including food from limited-service restaurants, vending services, and employee and school cafeterias) and alcoholic beverages as a weakly separable group. Using both the first- and second-stage estimates, we approximate elasticities of demand for disaggregated FAFH products conditional on total expenditure for nonfood. We find that the demands for the two FAFH products respond differently to changes in their own-product prices, other product prices and total expenditure for all goods.

Suggested Citation

  • Okrent, Abigail M. & Alston, Julian M., 2011. "The Demand for Disaggregated Food-Away-from-Home Products," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103625, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea11:103625
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    File URL: http://purl.umn.edu/103625
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    References listed on IDEAS

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    Cited by:

    1. Andreas Widenhorn & Klaus Salhofer, 2014. "Price Sensitivity Within and Across Retail Formats," Agribusiness, John Wiley & Sons, Ltd., vol. 30(2), pages 184-194, March.
    2. Silva, Andres & Garcia, Marian & Bailey, Alastair, 2012. "The Impact of Child Obesity News on Household Food Expenditure in the United Kingdom," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123526, Agricultural and Applied Economics Association.
    3. Widenhorn, Andreas & Salhofer, Klaus, 2014. "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 63(2).

    More about this item

    Keywords

    Food Demand; Food Away From Home (FAFH); Food Consumption/Nutrition/Food Safety; D12; Q11;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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