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A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income

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  • John L. Park
  • Rodney B. Holcomb
  • Kellie Curry Raper
  • Oral Capps

Abstract

Using the 1987–88 Nationwide Food Consumption Survey, twelve food commodity groups were analyzed according to household poverty status. Parameter estimates were used to obtain subsistence expenditures, own-price elasticities, expenditure elasticities, and income elasticities. Own-price elasticities were similar between the income groups for most commodities. However, income elasticities were consistently higher for the lower-income group. The use of average estimates of price and income elasticities for the population as a whole for the projection of individual commodity demands is not likely to be successful if notable changes are evident in income distribution. Copyright 1996, Oxford University Press.

Suggested Citation

  • John L. Park & Rodney B. Holcomb & Kellie Curry Raper & Oral Capps, 1996. "A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 290-300.
    • Handle: RePEc:oup:ajagec:v:78:y:1996:i:2:p:290-300
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