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Cross-price elasticities are updated in this report, using the World Bank’s 2005 International Comparison Program (ICP) data for 9 major consumption categories across 144 countries. The 2005 ICP offers the most recent consistent data set for such a large number of countries. The consumption categories are: food, beverage and tobacco; clothing and footwear; gross rent, fuel, and power; house furnishings and operations; medical and health; transport and communications; recreation; education; and “other.” Cross-price elasticities also are calculated and reported for a two-good demand system based on food and nonfood items. To our knowledge, the cross-country cross-price elasticity estimates in this report represent the only available consistent elasticity estimates for this large a number of countries and consumption categories, updated from earlier estimates based on 1996 ICP data.

New International Evidence on Food Consumption Patterns: A Focus on Cross-Price Effects Based on 2005 International Comparison Program Data