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Nutrient Demand in Food Away from Home

Author

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  • Richards Timothy J.

    (Arizona State University at the Te mpe Campus trichards@asu.edu)

  • Mancino Lisa

    (Economic Research Service, USDA lisa.mancino@ers.usda.gov)

  • Nganje William

    (Arizona State University william.nganje@asu.edu)

Abstract

Food away from home (FAFH) and, specifically fast food, has been targeted by academics and public policy officials alike as a major contributor to the obesity epidemic. Criticized as high in energy, fat and sugars, the implication is that consumers demand the combination of nutrients in FAFH in excess. If market-based policies intended to correct the perceived market failure in nutrient demand are to be successful, information on nutrient elasticities is required. Moreover, co-dependent relationships between nutrient intake and bioeconomic outcomes – obesity, physical activity and health status – are found to be important in the public health literature, but are not typically included in econometric studies of FAFH demand. Nutrients, however, do not have market prices. This study derives a set of implicit nutrient prices and estimates the elasticities of demand for nutrients in FAFH that takes into account the endogeneity of bioeconomic outcomes. Our estimation results show that fat is the only macro-nutrient that is elastic in demand, and all cross-price elasticities are small, so nutrient-based price policies may indeed be effective in modifying FAFH choices. Simulation results confirm this hypothesis, and also support the use of policies that subsidize positive health outcomes.

Suggested Citation

  • Richards Timothy J. & Mancino Lisa & Nganje William, 2012. "Nutrient Demand in Food Away from Home," Forum for Health Economics & Policy, De Gruyter, vol. 15(1), pages 1-31, April.
    • Handle: RePEc:bpj:fhecpo:v:15:y:2012:i:2:n:4
    DOI: 10.1515/1558-9544.1246
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    References listed on IDEAS

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    4. Schneider, Kate & Masters, William & Webb, Patrick & Christiaensen, Luc, 2020. "Sources, intake levels, and shadow prices of essential nutrients in rural Malawi: Evidence from household surveys and market prices reveal the cost of vitamins and minerals," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304483, Agricultural and Applied Economics Association.
    5. Sands, Sean & Maggioni, Isabella & Ferraro, Carla & Jebarajakirthy, Charles & Dharmesti, Maria, 2019. "The vice and virtue of on-the-go consumption: An exploratory segmentation," Journal of Retailing and Consumer Services, Elsevier, vol. 51(C), pages 399-408.

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