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City size and household food consumption: demand elasticities in Spain

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  • Elena Lasarte Navamuel
  • Fernando Rubiera Moroll
  • Dusan Paredes

Abstract

Are food price elasticities different across city sizes? The aim of this article is to estimate expenditure and own-price elasticities for 10 aggregated food product groups using the Spanish Household Budget Survey for the year 2010. These products are the ones for which the survey provides information regarding prices and quantities, thus allowing the application of an Almost Ideal Demand System (AIDS) model with censored data. The estimation procedure allows not only comparisons to be made among households with different levels of income, but also the contribution of residence characteristics to variations in demand. The results confirm that the size of the city in which the household resides has a similar significant and relevant effect on consumption patterns as family income level. This is especially clear with own-price elasticities. In Spain, large central cities show a greater response to price changes than smaller cities or rural peripheral areas.

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  • Elena Lasarte Navamuel & Fernando Rubiera Moroll & Dusan Paredes, 2014. "City size and household food consumption: demand elasticities in Spain," Applied Economics, Taylor & Francis Journals, vol. 46(14), pages 1624-1641, May.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:14:p:1624-1641
    DOI: 10.1080/00036846.2013.868593
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    5. Irz, Xavier & Mazzocchi, Mario & Réquillart, Vincent & Soler, Louis-Georges, 2015. "Research in Food Economics: past trends and new challenges," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 187-237, March.
    6. Pablo Gálvez & Petr Mariel & David Hoyos, 2016. "Análisis de la demanda residencial de los servicios básicos en España usando un modelo QUAIDS censurado," Estudios de Economia, University of Chile, Department of Economics, vol. 43(1 Year 20), pages 5-28, June.
    7. Haider, Adnan & Zaidi, Masroor, 2017. "Food Consumption Patterns and Nutrition Disparity in Pakistan," MPRA Paper 83522, University Library of Munich, Germany.
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