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The Calorie Consumption Puzzle in India: An Empirical Investigation

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Listed:
  • Deepankar Basu

    (University of Massachusetts, Amherst)

  • Amit Basole

    (University of Massachusetts, Amherst)

Abstract

Over the past four decades, India has witnessed a paradoxical trend: average per capita calorie intake has declined even as real per capita monthly expenditure has increased over time. Since cross sectional evidence suggests a robust positive relationship between the two variables, the trend emerges as a major puzzle. The main explanations that have been offered in the literature to address the puzzle are: rural impoverishment, relative price changes, decline in calorie needs, diversification of diets, a squeeze on the food budget due to rising expenditures on nonfood essentials, and decline in subsistence consumption (due to commercialization). Using a panel data set of 28 Indian states and the national capital territory of Delhi over four time periods (1993–94, 1999–00, 2004–05 and 2009–10), we test for these alternative explanations. Our results suggest that the puzzle can be explained by a combination of the following three factors: a food budget squeeze, declining subsistence consumption and diversification of diets. We do not find evidence of a strong effect of declining calorie needs. JEL Categories: O1, I30

Suggested Citation

  • Deepankar Basu & Amit Basole, 2012. "The Calorie Consumption Puzzle in India: An Empirical Investigation," UMASS Amherst Economics Working Papers 2012-07, University of Massachusetts Amherst, Department of Economics.
    • Handle: RePEc:ums:papers:2012-07
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    References listed on IDEAS

    as
    1. Raghav Gaiha & Raghbendra Jha & Vani S. Kulkarni, 2010. "Prices, Expenditure and Nutrition in India," ASARC Working Papers 2010-15, The Australian National University, Australia South Asia Research Centre.
    2. Balakrishnan, Pulapre, 2010. "Economic Growth in India: History and Prospect," OUP Catalogue, Oxford University Press, number 9780198065470.
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    More about this item

    Keywords

    calorie consumption puzzle; India; panel data;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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