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Aggregation, Flexible Forms, and Estimation of Food Consumption Parameters

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  • Cyrus A. Ramezani
  • Donald Rose
  • Suzanne Murphy

Abstract

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.

Suggested Citation

  • Cyrus A. Ramezani & Donald Rose & Suzanne Murphy, 1995. "Aggregation, Flexible Forms, and Estimation of Food Consumption Parameters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(3), pages 525-532.
    • Handle: RePEc:oup:ajagec:v:77:y:1995:i:3:p:525-532.
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    File URL: http://hdl.handle.net/10.2307/1243221
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    Cited by:

    1. Abdulai, Awudu & Aubert, Dominique, 2004. "A cross-section analysis of household demand for food and nutrients in Tanzania," Agricultural Economics, Blackwell, vol. 31(1), pages 67-79, July.
    2. Smed, Sinne & Jensen, Jorgen D. & Denver, Sigrid, 2007. "Socio-economic characteristics and the effect of taxation as a health policy instrument," Food Policy, Elsevier, vol. 32(5-6), pages 624-639.
    3. Holt, Matthew T., 2002. "Inverse demand systems and choice of functional form," European Economic Review, Elsevier, vol. 46(1), pages 117-142, January.
    4. Dhehibi, Boubaker & Laajimi, Abderraouf, 2004. "How Economic Factors Influence the Nutrient Content of Diets: an Application of Animal Products Demand System in Tunisia," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(2), pages 1-13, August.
    5. Wang, Qingbin & Halbrendt, Catherine & Johnson, Stanley R., 1996. "A non-nested test of the AIDS vs. the translog demand system," Economics Letters, Elsevier, vol. 51(2), pages 139-143, May.
    6. Dhehibi, Boubaker & Gil, Jose Maria & Angulo, Ana Maria, 2003. "Nutrient Effects On Consumer Demand: A Panel Data Approach," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25881, International Association of Agricultural Economists.
    7. Dhehibi, Boubaker & Laajimi, Abderraouf, 2009. "Effects of food prices and consumer income on nutrient availability: An application of the demand for dairy products in Tunisia," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 9(01), pages 1-12.

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