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The Impact of Income on Household Expenditure on Dairy Products: Evidence from the United States Dairy Market

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  • Rezgar Mohammed

    (University of Duhok, Iraq)

Abstract

This paper uses the diary portion of the 2016 Consumer Expenditure Survey to study the impact of income on dairy product expenditure in the United States using the Tobit model. Results show that the effect of income is positive and significant. However, as income increases, households introduce more dairy products into their consumption bundle. Low-income households who are eligible for the Supplemental Nutrition Assistance Program would get benefit from this program as the effect of this program on dairy product expenditure is also positive and significant. The study suggests that this information needs to be used by public sectors when formulating their health-promoting programs, and also by food retailers when making their market strategies.

Suggested Citation

  • Rezgar Mohammed, 2020. "The Impact of Income on Household Expenditure on Dairy Products: Evidence from the United States Dairy Market," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 8(1), pages 16-23.
    • Handle: RePEc:ejn:ejefjr:v:8:y:2020:i:1:p:16-23
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    References listed on IDEAS

    as
    1. Jayachandran N. Variyam & James Blaylock & David Smallwood, 2002. "Characterizing the Distribution of Macronutrient Intake among U.S. Adults: A Quantile Regression Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 454-466.
    2. Dickinson, David L. & Hobbs, Jill E. & Bailey, DeeVon, 2003. "A Comparison of U. S. and Canadian Consumers' Willingness to Pay for Red-Meat Traceability," 2003 Annual meeting, July 27-30, Montreal, Canada 22060, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Stewart, Hayden & Blisard, Noel & Jolliffe, Dean, 2003. "Do Income Constraints Inhibit Spending on Fruits and Vegetables Among Low-Income Households?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-16, December.
    4. Fuller, Frank H. & Beghin, John C. & Rozelle, Scott, 2007. "Consumption of dairy products in urban China: results from Beijing, Shangai and Guangzhou," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(4), pages 1-16.
    5. Rezgar Mohammed & Olga Murova, 2019. "The Effect of Price Reduction on Consumer's Buying Behavior in the U.S. Differentiated Yogurt Market," Applied Economics and Finance, Redfame publishing, vol. 6(2), pages 32-42, March.
    6. Wilde, Parke E. & Ranney, Christine K., 1996. "The Distinct Impact Of Food Stamps On Food Spending," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(1), pages 1-12, July.
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