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How elastic is calorie demand? parametric, nonparametric and semiparametric results for urban Papua New Guinea

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John Gibson
Scott Rozelle

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Abstract

This article seeks further evidence on the elasticity of calorie demand with respect to household resources. The case presented is for urban areas of Papua New Guinea, where just over one-half of the population appear to obtain less than the recommended amount of dietary energy. The relationship between per capita calorie consumption and per capita expenditure in urban areas of Papua New Guinea is not consistent with the view that income changes have negligible effects on nutrient intakes. The unconditional calorie demand elasticity is approximately 0.6 for the poorest half of the population. Using parametric and semiparametric estimation to control for a wide range of other influences on calorie consumption does not materially reduce the size of the elasticity. Therefore, these results are not supportive of 'growth-pessimism' and instead suggest that policies that increase urban household incomes will also act to reduce undernutrition.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal The Journal of Development Studies.

Volume (Year): 38 (2002)
Issue (Month): 6 (January)
Pages: 23-46
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Handle: RePEc:taf:jdevst:v:38:y:2002:i:6:p:23-46

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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.:
  1. Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June. [Downloadable!] (restricted)
  2. Delgado, Miguel A & Robinson, Peter M, 1992. " Nonparametric and Semiparametric Methods for Economic Research," Journal of Economic Surveys, Blackwell Publishing, vol. 6(3), pages 201-49.
  3. Bouis, Howarth E., 1994. "The effect of income on demand for food in poor countries: Are our food consumption databases giving us reliable estimates?," Journal of Development Economics, Elsevier, vol. 44(1), pages 199-226, June. [Downloadable!] (restricted)
  4. Ravallion, Martin, 1990. "Income Effects on Undernutrition," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 489-515, April.
  5. Bouis, Howarth E. & Haddad, Lawrence J., 1992. "Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range," Journal of Development Economics, Elsevier, vol. 39(2), pages 333-364, October. [Downloadable!] (restricted)
  6. Behrman, Jere R. & Wolfe, Barbara L., 1984. "More evidence on nutrition demand : Income seems overrated and women's schooling underemphasized," Journal of Development Economics, Elsevier, vol. 14(1), pages 105-128. [Downloadable!] (restricted)
  7. Sonia Bhalotra & Cliff Attfield, 1998. "Intrahousehold resource allocation in rural Pakistan: a semiparametric analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 463-480. [Downloadable!]
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  8. Ruel, Marie T. & Garrett, James L. & Morris, Saul Sutkover & Maxwell, Daniel G. & Oshaug, Arne & Engle, Patrice L. & Menon, Purnima & Slack, Alison T. & Haddad, Lawrence James, 1998. "Urban challenges to food and nutrition security," FCND discussion papers 51, International Food Policy Research Institute (IFPRI). [Downloadable!]
  9. Anglin, Paul M & Gencay, Ramazan, 1996. "Semiparametric Estimation of a Hedonic Price Function," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 633-48, Nov.-Dec.. [Downloadable!] (restricted)
  10. Subramanian, Shankar & Deaton, Angus, 1996. "The Demand for Food and Calories," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 133-62, February. [Downloadable!] (restricted)
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  1. Halliday, Timothy, 2008. "Mismeasured Household Size and Its Implications for the Identification of Economies of Scale," IZA Discussion Papers 3896, Institute for the Study of Labor (IZA). [Downloadable!]
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