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Aggregation, Flexible Forms, and Estimation of Food Consumption Parameters
Author(s) -
Ramezani Cyrus A.,
Rose Donald,
Murphy Suzanne
Publication year - 1995
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1243221
Subject(s) - economics , consumption (sociology) , estimation , econometrics , food consumption , commodity , nutrient , food choice , socioeconomic status , agricultural economics , microeconomics , environmental health , medicine , chemistry , organic chemistry , pathology , social science , management , sociology , market economy , population
Grouping schemes, commodity aggregation, and the choice of functional specification significantly influence the results of empirical demand studies. This article assesses the importance of these factors for estimating aggregate food consumption parameters. A flexible food demand model that nests alternative specifications is estimated using U.S. data. Foods are aggregated based on a new grouping scheme adopted from the “Dietary Guidelines for Americans.” Nutrient intake elasticities with respect to food prices and expenditure are calculated. The influence of socioeconomic variables on consumption and nutrient intake is analyzed. Price, income, and demographic effects are found to be highly significant. Our findings are invariant to the choice of functional form.