IDEAS home Printed from https://ideas.repec.org/p/ags/uersrr/132469.html
   My bibliography  Save this paper

The Demand for Disaggregated Food-Away-from-Home and Food-at-Home Products in the United States

Author

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

Abstract

Food away from home (FAFH) comprises nearly half of all U.S. consumer food expenditures. Hence, policies designed to influence nutritional outcomes would be incomplete if they did not address the role of FAFH. However, because of data limitations, most studies of the response of food demand to policy changes have ignored the role of FAFH, and those studies that have included FAFH have treated it as a single good. We, therefore, estimate demand for 43 disaggregated FAFH and food-at-home (FAH) products, using a 2-stage budgeting framework. We find that the demands for disaggregated FAFH products differ in price responsiveness and tend to be more sensitive to changes in food spending patterns than FAH products. Many foods are found to have statistically significant substitution and complementary relationships within and among food groups. Predicted changes in quantities based on our estimates that include all goods and services and those estimates that include only a subset of foods differ substantially, implying that evaluations of health and nutrition policy based on elasticities of demand for only a subset of goods may be misleading.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:uersrr:132469
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/132469/files/err139.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bergtold, Jason S. & Akobundu, Eberechukwu & Peterson, Everett B., 2004. "The FAST Method: Estimating Unconditional Demand Elasticities for Processed Foods in the Presence of Fixed Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(02), August.
    2. 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, December.
    3. Janet Currie & Stefano DellaVigna & Enrico Moretti & Vikram Pathania, 2010. "The Effect of Fast Food Restaurants on Obesity and Weight Gain," American Economic Journal: Economic Policy, American Economic Association, vol. 2(3), pages 32-63, August.
    4. James Eales & Catherine Durham & Cathy R. Wessells, 1997. "Generalized Models of Japanese Demand for Fish," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1153-1163.
    5. X. M. Gao & Thomas Spreen, 1994. "A Microeconometric Analysis of the U.S. Meat Demand," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 42(3), pages 397-412, November.
    6. Chou, Shin-Yi & Grossman, Michael & Saffer, Henry, 2004. "An economic analysis of adult obesity: results from the Behavioral Risk Factor Surveillance System," Journal of Health Economics, Elsevier, vol. 23(3), pages 565-587, May.
    7. Keller, W.J. & Van Driel, J., 1985. "Differential consumer demand systems," European Economic Review, Elsevier, vol. 27(3), pages 375-390.
    8. Nicholas E. Piggott, 2003. "The Nested PIGLOG Model: An Application to U.S. Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 1-15.
    9. Okrent, Abigail M. & Alston, Julian M., 2010. "The Demand for Food in the United States: A Review of the Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61674, Agricultural and Applied Economics Association.
    10. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation Of Food Demand And Nutrient Elasticities From Household Survey Data," Technical Bulletins 33579, United States Department of Agriculture, Economic Research Service.
    11. repec:aph:ajpbhl:10.2105/ajph.2008.137638_9 is not listed on IDEAS
    12. Lin, Biing-Hwan & Frazao, Elizabeth & Guthrie, Joanne F., 1999. "Away-From-Home Foods Increasingly Important to Quality of American Diet," Agricultural Information Bulletins 33733, United States Department of Agriculture, Economic Research Service.
    13. Barnes, Roberta & Gillingham, Robert, 1984. "Demographic Effects in Demand Analysis: Estimation of the Quadratic Expenditure System Using Microdata," The Review of Economics and Statistics, MIT Press, vol. 66(4), pages 591-601, November.
    14. Brown, Mark G. & Lee, Jonq-Ying & Seale, James L., Jr., 1994. "Demand Relationships Among Juice Beverages: A Differential Demand System Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 26(02), December.
    15. Albert J. Reed & J. William Levedahl & Charles Hallahan, 2005. "The Generalized Composite Commodity Theorem and Food Demand Estimation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(1), pages 28-37.
    16. Toshinobu Matsuda, 2005. "Differential Demand Systems: A Further Look at Barten's Synthesis," Southern Economic Journal, Southern Economic Association, vol. 71(3), pages 607-619, January.
    17. X. M. Gao & J. S. Shonkwiler, 1993. "Characterizing Taste Change in a Model of U.S. Meat Demand: Correcting for Spurious Regression and Measurement Errors," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 15(2), pages 313-324.
    18. repec:oup:revage:v:25:y:2003:i:1:p:187-202. is not listed on IDEAS
    19. 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.
    20. James L. Seale & Mary A. Marchant & Alberto Basso, 2003. "Imports versus Domestic Production: A Demand System Analysis of the U.S. Red Wine Market," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 187-202.
    21. Terry L. Kastens & Gary W. Brester, 1996. "Model Selection and Forecasting Ability of Theory-Constrained Food Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 301-312.
    22. Stewart, Hayden & Blisard, Noel & Bhuyan, Sanjib & Nayga, Rodolfo M., Jr., 2004. "The Demand For Food Away From Home: Full-Service Or Fast Food?," Agricultural Economics Reports 33953, United States Department of Agriculture, Economic Research Service.
    23. Joseph Beaulieu, J. & Miron, Jeffrey A., 1993. "Seasonal unit roots in aggregate U.S. data," Journal of Econometrics, Elsevier, vol. 55(1-2), pages 305-328.
    24. John L. Park & Rodney B. Holcomb & Kellie Curry Raper & Oral Capps, 1996. "A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 290-300.
    25. Heien, Dale & Pompelli, Greg, 1988. "The Demand For Beef Products: Cross-Section Estimation Of Demographic And Economic Effects," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 13(01), July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Okrent, Abigail & Kumcu, Aylin, 2014. "What’s Cooking? Demand for Convenience Foods in the United States," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170541, Agricultural and Applied Economics Association.
    2. Shewmake, Sharon & Okrent, Abigail & Thabrew, Lanka & Vandenbergh, Michael, 2015. "Predicting consumer demand responses to carbon labels," Ecological Economics, Elsevier, vol. 119(C), pages 168-180.
    3. Kumcu, Aylin & Okrent, Abigail M ., 2014. "Methodology for the Quarterly Food- Away-from - Home Prices Data," Technical Bulletins 184292, United States Department of Agriculture, Economic Research Service.
    4. Amoakon, Joel & Ejimakor, Godfrey & Hardy, Deric, 2016. "Exploring the Food Expenditure Patterns of College Students," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230666, Southern Agricultural Economics Association.
    5. Pruitt, J. Ross & Holcomb, Rodney B., 2015. "Impacts on Food Safety Recalls and Consumer Information on Restaurant Performance," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196720, Southern Agricultural Economics Association.
    6. Weatherspoon, Dave D. & Kuhns, Annemarie & Leschewski, Andrea & Dickens, Chris, 2015. "The Relationship between Supermarket Concentration and the Shopping Habits of the Urban Poor: a Prepared Foods Example," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205691, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    7. Rosa Ferrer & Helena Perrone, 2017. "Consumers’ Costly Responses to Product-Harm Crises," Working Papers 975, Barcelona Graduate School of Economics.
    8. Stephanie von Hinke & George Leckie, 2017. "Protecting Calorie Intakes against Income Shocks," Bristol Economics Discussion Papers 17/684, Department of Economics, University of Bristol, UK.

    More about this item

    Keywords

    Agricultural and Food Policy; Demand and Price Analysis; Food Consumption/Nutrition/Food Safety;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:uersrr:132469. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/ersgvus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.