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Do Prices and Attributes Explain International Differences in Food Purchases?

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Listed author(s):
  • Dubois, Pierre
  • Griffith, Rachel
  • Nevo, Aviv

Abstract

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.

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Paper provided by Toulouse School of Economics (TSE) in its series TSE Working Papers with number 370.

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Date of creation: Jan 2013
Date of revision: May 2013
Publication status: Published in American Economic Review, vol. 104, n°3, mars 2014, p. 832-867.
Handle: RePEc:tse:wpaper:26732
Contact details of provider: Phone: (+33) 5 61 12 86 23
Web page: http://www.tse-fr.eu/

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Find related papers by JEL classification:
  • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
  • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
  • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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  1. David Atkin, 2013. "Trade, Tastes, and Nutrition in India," American Economic Review, American Economic Association, vol. 103(5), pages 1629-1663, August.
  2. Seale, James & Regmi, Anita & Bernstein, Jason, 2003. "International Evidence on Food Consumption Patterns," Technical Bulletins 184321, United States Department of Agriculture, Economic Research Service.
  3. Dana Goldman & Darius Lakdawalla & Yuhui Zheng, 2011. "Food Prices and the Dynamics of Body Weight," NBER Chapters,in: Economic Aspects of Obesity, pages 65-90 National Bureau of Economic Research, Inc.
  4. Lu, Yang & Goldman, Dana, 2010. "The Effects of Relative Food Prices on Obesity – Evidence from China: 1991-2006," Working Papers 58249, American Association of Wine Economists.
  5. David M. Cutler & Edward L. Glaeser & Jesse M. Shapiro, 2003. "Why Have Americans Become More Obese?," Journal of Economic Perspectives, American Economic Association, vol. 17(3), pages 93-118, Summer.
  6. Richard Blundell & Jean-Marc Robin, 2000. "Latent Separability: Grouping Goods without Weak Separability," Econometrica, Econometric Society, vol. 68(1), pages 53-84, January.
  7. Sara Bleich & David Cutler & Christopher Murray & Alyce Adams, 2007. "Why Is The Developed World Obese?," NBER Working Papers 12954, National Bureau of Economic Research, Inc.
  8. Andrew Leicester & Zoë Oldfield, 2009. "Using Scanner Technology to Collect Expenditure Data," Fiscal Studies, Institute for Fiscal Studies, vol. 30(Special I), pages 309-337, December.
  9. Dixit R & Mathew Dilip & Raghuram, G., 1990. "A Note on the Indian Motor Vehicle," IIMA Working Papers WP1990-12-01_00984, Indian Institute of Management Ahmedabad, Research and Publication Department.
  10. S. Narayan, 2009. "India," Chapters, in: The Political Economy of Trade Reform in Emerging Markets, chapter 7 Edward Elgar Publishing.
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Cited by:

  1. Griffith, Rachel & Krol, Michal & Smith, Kate, 2015. "Store Brands and the Role of Advertising," CEPR Discussion Papers 10877, C.E.P.R. Discussion Papers.
  2. Drew Zhu, 2016. "Demand without Utility: The First Evidence," 2016 Papers pzh519, Job Market Papers.
  3. Ji Yan & Kun Tian & Huw D. Dixon & Saeed Heravi & Peter Morgan, 2014. "Shop Around and You Pay More," CESifo Working Paper Series 4940, CESifo Group Munich.
  4. Dragone, D. & Ziebarth, N.R., 2015. "Non-Separable Time Preferences and Novelty Consumption: Theory and Evidence from the East German Transition to Capitalism," Health, Econometrics and Data Group (HEDG) Working Papers 15/28, HEDG, c/o Department of Economics, University of York.
  5. Paolo Giovanni Piacquadio, 2016. "A Fairness Justification of Utilitarianism," CESifo Working Paper Series 5785, CESifo Group Munich.
  6. Christophe Gouel & Houssein Guimbard, 2017. "Nutrition transition and the structure of global food demand," Working Papers 2017-05, CEPII research center.
  7. Ferrer, Rosa & Perrone, Helena, 2016. "Consumers' Costly Responses to Product Safety Threats," CEPR Discussion Papers 11262, C.E.P.R. Discussion Papers.
  8. Rachel Griffith & Martin O'Connell & Kate Smith, 2016. "Shopping Around: How Households Adjusted Food Spending Over the Great Recession," Economica, London School of Economics and Political Science, vol. 83(330), pages 247-280, 04.
  9. Wang, Emily & Rojas, Christian & Bauner, Christoph, 2015. "Evolution of nutritional quality in the US: Evidence from the ready-to-eat cereal industry," Economics Letters, Elsevier, vol. 133(C), pages 105-108.
  10. Dragone, Davide & Ziebarth, Nicolas R., 2015. "Economic Development, Novelty Consumption, and Body Weight: Evidence from the East German Transition to Capitalism," IZA Discussion Papers 8967, Institute for the Study of Labor (IZA).
  11. Griffith, Rachel & Lluberas, Rodrigo & Luhrmann, Melanie, 2016. "Gluttony and Sloth? calories, labour market activity and the rise of obesity," CEPR Discussion Papers 11086, C.E.P.R. Discussion Papers.
  12. Lichtman-Sadot, Shirlee, 2016. "Does banning carbonated beverages in schools decrease student consumption?," Journal of Public Economics, Elsevier, vol. 140(C), pages 30-50.
  13. Emily Oster, 2015. "Diabetes and Diet: Behavioral Response and the Value of Health," NBER Working Papers 21600, National Bureau of Economic Research, Inc.
  14. Dragone, Davide & Ziebarth, Nicolas R., 2017. "Non-separable time preferences, novelty consumption and body weight: Theory and evidence from the East German transition to capitalism," Journal of Health Economics, Elsevier, vol. 51(C), pages 41-65.
  15. Daniel Herrera‐Araujo, 2016. "Folic acid advisories: a public health challenge?," Health Economics, John Wiley & Sons, Ltd., vol. 25(9), pages 1104-1122, 09.

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