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Price Elasticities of Food Demand: Compensated vs Uncompensated

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  • Kenneth W. Clements
  • Jiawei Si

Abstract

Two recent studies have provided a comprehensive review/summary of a large number of estimates of the price elasticity of food consumption using a meta‐regression approach. In this letter, we introduce a way of removing the income effect from these elasticities to recover the compensated elasticities. Although the income effect is small, the compensated elasticities vary by income group. Both types of elasticity should possibly be considered when assessing the impact of policy changes on food consumption. Copyright © 2015 John Wiley & Sons, Ltd.

Suggested Citation

  • Kenneth W. Clements & Jiawei Si, 2016. "Price Elasticities of Food Demand: Compensated vs Uncompensated," Health Economics, John Wiley & Sons, Ltd., vol. 25(11), pages 1403-1408, November.
    • Handle: RePEc:wly:hlthec:v:25:y:2016:i:11:p:1403-1408
    DOI: 10.1002/hec.3226
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    References listed on IDEAS

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    1. Grace Gao, 2012. "World Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 25-51.
    2. Clements,Kenneth W. & Zhao,Xueyan, 2014. "Economics and Marijuana," Cambridge Books, Cambridge University Press, number 9781107421479.
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    3. Syed Hasan & Mathias Sinning, 2018. "GST Reform in Australia: Implications of Estimating Price Elasticities of Demand for Food," The Economic Record, The Economic Society of Australia, vol. 94(306), pages 239-254, September.
    4. Ou Yang & Peter Sivey & Andrea M. de Silva & Anthony Scott, 2020. "Parents' Demand for Sugar Sweetened Beverages for Their Pre‐School Children: Evidence from a Stated‐Preference Experiment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(2), pages 480-504, March.

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