Food and Cross-Country Income Comparisons
This paper examines the idea of making international income comparisons on the basis of food consumption patterns. We commence by giving a brief review on the different ways of measuring real income and highlight some of the problems. Next, we embark on an international journey by analyzing food consumption in 43 countries using Working’s (1943) model as the “travel mode”. We show that this model yields results which are consistent with other studies. In particular, our data seem to obey the so-called “strong version of Engel’s law”, according to which a doubling of income is associated with the food budget share declining by 10 percentage points. On this basis, we then use the food budget share to develop an alternative measure of real income. We provide evidence that this new measure is superior to conventional PPP versions of gross domestic product and consumption.
|Date of creation:||2003|
|Date of revision:|
|Contact details of provider:|| Postal: 35 Stirling Highway, Crawley, W.A. 6009|
Phone: (08) 9380 2918
Fax: (08) 9380 1016
Web page: http://www.business.uwa.edu.au/school/disciplines/economics
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Blanciforti, Laura & Green, Richard, 1983. "An Almost Ideal Demand System Incorporating Habits: An Analysis of Expenditures on Food and Aggregate Commodity Groups," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 511-15, August.
- William D. Nordhaus & James Tobin, 1973.
"Is Growth Obsolete?,"
in: The Measurement of Economic and Social Performance, pages 509-564
National Bureau of Economic Research, Inc.
- Theil, Henri & Finke, Renate, 1984. "A time series analysis of a demand system based on cross-country coefficient estimates," Economics Letters, Elsevier, vol. 15(3-4), pages 245-250.
- Izan, Haji Y. & Clements, Kenneth W., 1979. "A cross-cross-section analysis of consumption patterns," Economics Letters, Elsevier, vol. 4(1), pages 83-86.
- K.W. Clements & E.A. Selvanathan & S. Selvanathan, 1996.
"Applied Demand Analysis: A survey,"
Economics Discussion / Working Papers
96-04, The University of Western Australia, Department of Economics.
- Chung, Ching-Fan & Lopez, Elena, 1988. "A regional analysis of food consumption in Spain," Economics Letters, Elsevier, vol. 26(3), pages 209-213.
- Barten, Anton P, 1993. "Consumer Allocation Models: Choice of Functional Form," Empirical Economics, Springer, vol. 18(1), pages 129-58.
- Bruce W. Hamilton, 2001. "Using Engel's Law to Estimate CPI Bias," American Economic Review, American Economic Association, vol. 91(3), pages 619-630, June.
- Finke, Renate & Flood, Lennart R. & Theil, Henri, 1984. "Maximum likelihood and instrumental variable estimation of a consumer demand system for Japan and Sweden," Economics Letters, Elsevier, vol. 15(1-2), pages 13-19.
- Aasness, Jorgen & Rodseth, Asbjorn, 1983. "Engel curves and systems of demand functions," European Economic Review, Elsevier, vol. 20(1-3), pages 95-121, January.
- Musgrove, Philip, 1985. "Household Food Consumption in the Dominican Republic: Effects of Income, Price, and Family Size," Economic Development and Cultural Change, University of Chicago Press, vol. 34(1), pages 83-101, October.
- Seale, James L., Jr. & Regmi, Anita & Bernstein, Jason, 2003.
"International Evidence On Food Consumption Patterns,"
33580, United States Department of Agriculture, Economic Research Service.
- Seale, James & Regmi, Anita & Bernstein, Jason, 2003. "International Evidence on Food Consumption Patterns," Technical Bulletins 184321, United States Department of Agriculture, Economic Research Service.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
When requesting a correction, please mention this item's handle: RePEc:uwa:wpaper:03-14. 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: (Verity Chia)
If references are entirely missing, you can add them using this form.