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Price Elasticities of Food Demand: Compensated vs Uncompensated
Author(s) -
Clements Kenneth W.,
Si Jiawei
Publication year - 2016
Publication title -
health economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.55
H-Index - 109
eISSN - 1099-1050
pISSN - 1057-9230
DOI - 10.1002/hec.3226
Subject(s) - economics , elasticity (physics) , price elasticity of demand , income elasticity of demand , econometrics , consumption (sociology) , food consumption , agricultural economics , microeconomics , social science , materials science , sociology , composite material
Two recent studies have provided a comprehensive review/summary of a large number of estimates of the price elasticity of food consumption using a meta‐regression approach. In this letter, we introduce a way of removing the income effect from these elasticities to recover the compensated elasticities. Although the income effect is small, the compensated elasticities vary by income group. Both types of elasticity should possibly be considered when assessing the impact of policy changes on food consumption. Copyright © 2015 John Wiley & Sons, Ltd.