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Testing Local Bias in Food Consumption: The Case of Fluid Milk

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  • Khanal, Binod
  • Lopez, Rigoberto A.
  • Azzam, Azzeddine

Abstract

This article provides the first set of estimates of the degree of local bias in food consumption, by adapting the international trade notion of home bias, which describes the tendency of consumers to favour domestic over imported goods, to local bias, which describes the tendency of consumers to favour local over nonlocal food. Using state boundaries to define local and household data on milk purchases from 2007 until 2016 in the New England region, estimates from the Armington model confirm bias for locally produced milk.

Suggested Citation

  • Khanal, Binod & Lopez, Rigoberto A. & Azzam, Azzeddine, 2018. "Testing Local Bias in Food Consumption: The Case of Fluid Milk," Working Paper series 290143, University of Connecticut, Charles J. Zwick Center for Food and Resource Policy.
  • Handle: RePEc:ags:ucozwp:290143
    DOI: 10.22004/ag.econ.290143
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    1. Olper, Alessandro & Raimondi, Valentina, 2008. "Agricultural market integration in the OECD: A gravity-border effect approach," Food Policy, Elsevier, vol. 33(2), pages 165-175, April.
    2. Binod Khanal & Rigoberto A. Lopez & Azzeddine Azzam, 2020. "Testing local bias in food consumption: The case of fluid milk," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 339-344, April.
    3. Jason Winfree & Philip Watson, 2017. "The Welfare Economics of “Buy Local”," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 971-987.
    4. Stephen Toler & Brian C. Briggeman & Jayson L. Lusk & Damian C. Adams, 2009. "Fairness, Farmers Markets, and Local Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1272-1278.
    5. Kim Darby & Marvin T. Batte & Stan Ernst & Brian Roe, 2008. "Decomposing Local: A Conjoint Analysis of Locally Produced Foods," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 476-486.
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    9. Bond, Jennifer Keeling & Thilmany, Dawn & Bond, Craig, 2009. "What Influences Consumer Choice of Fresh Produce Purchase Location?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(1), pages 61-74, April.
    10. Hand, Michael S. & Martinez, Stephen W., 2010. "Just What Does Local Mean?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 25(1), pages 1-4.
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    13. Hayk Khachatryan & Alicia Rihn & Ben Campbell & Bridget Behe & Charles Hall, 2018. "How do consumer perceptions of “local†production benefits influence their visual attention to state marketing programs?," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 390-406, March.
    14. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, February.
    15. Onozaka, Yuko & Nurse, Gretchen & Thilmany, Dawn D., 2010. "Local Food Consumers: How Motivations and Perceptions Translate to Buying Behavior," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 25(1), pages 1-6.
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    Cited by:

    1. Yizao Liu & Xuan Chen & Adam N. Rabinowitz & Benjamin Campbell, 2020. "Demand, challenges, and marketing strategies in the retail promotion of local brand milk," Agricultural Economics, International Association of Agricultural Economists, vol. 51(5), pages 655-668, September.
    2. Lopez, Rigoberto A. & Khanal, Binod, 2020. "Got Local? Demand for Milk with Food Miles," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304354, Agricultural and Applied Economics Association.
    3. Binod Khanal & Rigoberto A. Lopez & Azzeddine Azzam, 2020. "Testing local bias in food consumption: The case of fluid milk," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 339-344, April.

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    More about this item

    Keywords

    Consumer/Household Economics; Food Consumption/Nutrition/Food Safety; Livestock Production/Industries;
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