Do Prices and Attributes Explain International Differences in Food Purchases?
Food purchases differ substantially across countries. We use detailed household level data from the US, France and the UK to (i) document these differences; (ii) esti- mate a demand system for food and nutrients, and (iii) simulate counterfactual choices if households faced prices and nutritional characteristics from other countries. We find that differences in prices and characteristics are important and can explain some di¤erence (e.g., US-France di¤erence in caloric intake), but generally cannot explain many of the compositional patterns by themselves. Instead, it seems an interaction between the economic environment and di¤erences in preferences is needed to explain cross country differences.
|Date of creation:||Jan 2013|
|Date of revision:||May 2013|
|Publication status:||Published in American Economic Review, vol. 104, n. 3, March 2014, p. 832-867.|
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