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International Consumption Patterns: Evidence From the 1996 International Comparison Project

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  • Seale Jr., James
  • Regmi, Anita

Abstract

The Florida model, a modified Working’s model that incorporates price terms, is fit to the 1996 International Comparison Project’s data for nine broad categories of goods across 114 countries. The country data exhibit group heteroskedasticity, and a maximum likelihood procedure that corrects for group heteroskedasticity is developed and used to estimate the model. Outliers are identified with information inaccuracy measures, and Strobel measures of goodness-of-fit are calculated. Results suggest that low-, middle-, and high-income countries have distinct income and price responses; low-income countries are more responsive to income and price changes than high-income countries. Additionally, the conditional demand for eight food subcategories is fit to the data and results are linked to the aggregate level results to calculate conditional and unconditional expenditure elasticities for these goods.

Suggested Citation

  • Seale Jr., James & Regmi, Anita, 2003. "International Consumption Patterns: Evidence From the 1996 International Comparison Project," Conference papers 331093, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331093
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    References listed on IDEAS

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    1. Mr. Peter J Kunzel & Mr. Oleh Havrylyshyn, 1997. "Intra-Industry Trade of Arab Countries: An Indicator of Potential Competitiveness," IMF Working Papers 1997/047, International Monetary Fund.
    2. Peter A. Petri, 1997. "Trade Strategies for the Southern Mediterranean," OECD Development Centre Working Papers 127, OECD Publishing.
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