An assessment of the current structure of food demand in urban China

We evaluate the current structure of food demand in urban China by using household expenditure survey data from five provinces. Two complementary analyses are undertaken. First, an aggregate analysis based on a fractional logit model is used to examine how households allocate food expenditures across the food‐at‐home (FAH) and food‐away‐from‐home (FAFH) categories. This is followed by a disaggregated analysis of how households allocated their FAH expenditures across 12 commodity categories. A Quadratic Almost Ideal Demand System (QUAIDS) is used. We find evidence of significant food purchase substitution and complementarity.     

An Econometric Analysis of Total (Domestic) and Import Demand for Beef in Hong Kong

This paper presents an applied econometric analysis of total (domestic and import) demand for beef in Hong Kong for the period 1970 to 1988. The estimates are in logarithmic form and provide elasticity estimates for beef demand (domestic and import) in Hong Kong. Variables in the estimated domestic demand models (per capita and aggregate) include own price, prices of a substitute (pork) and a complement (rice) and income. Variables in the estimated import demand model include demand side variables (price of beef, price of pork, price of rice and income) and the price of imported live cattle as a supply shifting variable. The elasticities were inelastic for the domestic demand models while most of those for the import demand model were elastic.     

Urban water demand with fixed volumetric charging in a large municipality: the case of Brisbane,Australia*

This paper uses suburb‐level quarterly data to model residential water demand in Brisbane, Australia, from 1998 to 2003. In this system, residential consumption is charged using a fixed annual service fee with no water entitlement followed by a fixed volumetric charge per kilolitre. Water demand is specified as average quarterly household water consumption and the demand characteristics include the marginal price of water, household income and size, and the number of rainy and warm days. The findings not only confirm residential water as price and income inelastic, but also that the price and income elasticity of demand in owner‐occupied households is higher than in rented households. The results also show that weather, particularly summer months and the number of rainy days, exerts a strong influence on residential water consumption.     

U.S. Canned Tuna Supply and Demand

Abstract

A 3SLS econometric model is used to estimate price elasticities of supply and demand for domestically produced and imported canned tuna in the U.S. market. In addition, a VAR model is developed to examine the relations between imports and domestically produced canned tuna. For domestically produced canned tuna, a 3SLS estimation of a structural econometric model yielded a coefficient for price elasticity of supply of 0.2 and of own-price demand of ?0.3. Such price inelasticities are expected of a fishery exploited at or near its maximum yields (inelastic supply), and a consumer product widely viewed as almost a necessity in a well-stocked pantry (inelastic demand). In addition, the model yielded a cross-price elasticity of demand with respect to the price of imported canned tuna of 0.45. Additional results include an income elasticity U.S. demand for domestically packed tuna of 0.83; a cross-price elasticity with the price of bread (a complement) of ?0.33, a cross-price elasticity for the price of ground meat (a substitute) of 0.30. With respect to imported canned tuna in the U.S. market, the corresponding elasticities estimated in the model are ?1.3 (own-price demand), 3.5 (income elasticity), ?1.2 (cross-price with the price of bread) and 2.5 (cross-price with the price of ground meat).

For canned tuna company managers, the results provide useful information about the likely effects on sales that would come from their own price changes, from changes in the price of imported canned tuna, and from price changes in the markets for complementary and substitute products. They can also use our results in discussions with U.S. trade negotiators, who are frequently faced with disputes over tariffs, market access, and other trade issues.     

沈阳市城镇居民生活用水需求影响因素分析

利用时序数据及沈阳市康平县城镇居民生活用水的截面数据,对沈阳市城镇居民生活用水需求的影响因素进行实证分析,估计其需求价格弹性、需求收入弹性及需求教育弹性。估计结果明显有别于其他地区的研究结果,建议沈阳市应根据城镇居民生活用水水价偏低、收入弹性较大的实际,同时考虑到居民的承受力,调高水价时采用递增的阶梯式水价或补贴低收入用水户等政策,合理发挥价格杠杆的作用,同时还应注意到负的需求教育弹性,加强对居民的节水宣传教育。     

Quantifying the structure of food demand in China: An econometric approach

This article examines food demand structure and its dynamics for 11 commodities in urban China. The analysis is based on household‐level expenditure survey data for two cross‐sectional surveys of Chinese households pertaining to food expenditure patterns during 1995 and 2003. Pre‐committed components of commodity demands, that are insensitive to economic variables, are explored. We use the generalized quadratic almost ideal demand system (GQAIDS) for its empirical superiority to the generalized almost ideal demand system (GAIDS), and estimate the associated parameters via full information maximum likelihood procedure (FIML) accounting for endogeneity of total expenditures on food for home consumption (FAH). We also use quality‐adjusted commodity unit values to control for quality differences resulting from commodity aggregation and food choice. Furthermore, we derive GQAIDS elasticity formulas, and estimate income elasticities without restrictions. The results partially support the hypothesis that an average Chinese household has incorporated elements of Western diet (fine grains) into traditional Chinese food diet over time. Moreover, the outcome of a simple test developed here points to possible preference changes for a majority of food staples under study.     

Spanish Demand for Food Away from Home: Analysis of Panel Data

We analyse the Spanish demand for food away from home (FAFH). A panel dataset is built and appropriate techniques for estimating limited dependent variable models are applied. Results indicate that where there are zero expenditures, these are largely due to infrequency of purchase rather than to abstention, or for economic reasons. Furthermore, important differences appear among households. Households whose head is a highly educated person, male, young and living on a salary in a large town is more likely to purchase FAFH. FAFH expenditure responses to an increase in total per capita expenditure are markedly different depending on the age of the household's head, their employment status and also the size of the resident's town. The lowest elasticity is shown by single‐person households, between 36 and 55 years old, employed and living in large towns, for whom FAFH has become a necessity. On the other hand, FAFH remains a luxury for unemployed couples with one or two children.     

Does Food Safety Information Impact U.S. Meat Demand?

A theoretical model of consumer response to publicized food safety information on meat demand is developed with an empirical application to U.S. meat consumption. Evidence is found for the existence of pre-committed levels of consumption, seasonal factors, time trends, and contemporaneous own- and cross-commodity food safety concerns. The average demand response to food safety concerns is small, especially in comparison to price effects, and to previous estimates of health related issues. This small average effect masks periods of significantly larger responses corresponding with prominent food safety events, but these larger impacts are short-lived with no apparent food safety lagged effects on demand.     

Nutrient effects in consumer demand systems: evidence from panel data

This papers aims to analyse the demand for main food groups in Spain. Apart from the traditional economic factors (prices and income), our theoretical framework incorporates the nutrient composition of food into a demand model in the form of food attributes, as a proxy to take into account the rising consumer concern about the relationship between diet and health. A CBS functional form is chosen for the empirical model, which is estimated using a complete panel data set. Ten broad categories, nine nutrients and the most relevant socio-economic variables have been considered. Finally, after employing an appropriate selection strategy, the chosen model is used to calculate expenditure, price and nutrient elasticities, as well as the main socio-demographic effects. Results indicate that the introduction of nutrient-based determinants generates elasticities that differ from those obtained when only economic factors are included, particularly in the case of price elasticities. As the nutrients effect is incorporated in the model through adjusted prices, unhealthier food groups (cereals, white meat and eggs, dairy and sugar) become more inelastic as they are associated with higher perceived prices.     

Fruit and Vegetable Consumption Patterns: A Segmentation Approach

In this article, we study the heterogeneity of fruit and vegetable consumption patterns in France. A finite mixture of AIDS models is used to describe food demand patterns revealing different preferences over distinct classes. We obtained six different clusters, which reflect specific socio-demographic characteristics and different income and price elasticities. This approach is appropriate for targeting specific public nutritional policies. Our main results show that unlike the other clusters in which the usual price and income policy tools may be used, the lowest income cluster with the lowest consumption, remains insensitive to economic variables.     

Testing for pre‐committed quantities of Australian meat demand

Pre‐committed consumption represents the portion of demand that is determined by non‐price and non‐income factors. This study uses quarterly data to estimate a Generalised Almost Ideal Demand System (GAIDS) to test for the existence of pre‐committed meat consumption in Australia. Two specifications are estimated to evaluate the impact of seasonal and time trend factors on pre‐committed demand. Evidence is found for the existence of pre‐committed chicken consumption when jointly estimated with seasonal and time trend factors. Results support improved demand modelling of Australian meat consumption using the GAIDS and provide insights into how Australian meat demand is affected by price, expenditures, pre‐committed consumption, seasonality, and trends.     

Inducing Patterns of Correlation and Substitution in Repeated Logit Models of Recreation Demand

Repeated logit models are among the most commonly applied methods for modeling seasonal recreation demand. In this article we examine the capabilities of the repeated nested logit and repeated mixed logit models to capture patterns of error correlation and demand substitution. Particular attention is paid to the use of the mixed logit framework to generalize the strong assumptions on correlation patterns across sites and choice occasions imbedded in the nested logit model. We examine the implications for the range of price elasticities allowed in both models based on the implied correlation structures.     

A new market for an old food: the U.S. demand for olive oil

While U.S. consumption of olive oil has tripled over the past two decades, nearly all olive oil continues to be imported. Estimation of a demand system using monthly import data reveals that the income elasticity for virgin oils sourced from EU is above one, but demand for nonvirgin oils is income‐inelastic. The demand for olive oil as a single product is price‐inelastic. Differentiated by product characteristic and origin, olive oils are highly substitutable with each other but not with other vegetable oils. News about the health and culinary benefits of olive oil and the spread of Mediterranean diet contribute significantly to the rising demand.     

Lithuania's food demand during economic transition

The linear approximate version of the almost ideal demand system (LA‐AIDS) model is estimated using data from the Lithuanian household budget survey (HBS) covering the period from July 1992 to December 1994. Price and real expenditure elasticities for 12 food groups were estimated based on the estimated coefficients of the model. Very little or nothing is known about the demand parameters of Lithuania and other former socialist countries, so the results are of intrinsic interest. Estimated expenditure elasticities were positive and statistically significant for all food groups, while all own‐price elasticities were negative and statistically significant, except for that of eggs which was insignificant. Results suggest that Lithuanian household consumption did respond to price and real income changes during their transition to a market‐oriented economy.     

Assessing the U.S. Market Economics for a Cultured Flounder,Paralichthys sp., Industry

There is considerable interest in the culture of flounder because of its high retail market value, the established worldwide market for flatfish, and the ability of flounder to grow in fresh or brackish water. The author assesses the U.S. market potential for a cultured flounder, Paralichthys sp., industry. Regression analyses were used to estimate both the price and income elasticity of demand for flounder. Demand forecasting was used to predict effective annual future demand for flounder. Although the U.S. flounder market is large and expanding, there are indications of excess supply suppressing prices below profitable levels for aquaculture producers. Demand is price inelastic, so an increase in supply from aquaculture production will produce a disproportionately large decrease in price, reducing total producer revenue. Unless niche markets are targeted or an export market is developed, the outlook for large-scale flounder aquaculture in the United States is not economically promising.     

Expenditure Pattern for Food Away from Home Consumption in Turkey

ABSTRACT

One of the largest recent changes in consumer food purchasing behavior is the trend towards greater consumption of food eaten outside the home. Between 1994 and 2000, the share of total food expenditures spent on food away from home (FAFH) increased from 7 to 15% with an increasing share for fast-food facilities. This study focuses on whether demographic and socioeconomic factors have detectable effects on Turkish FAFH expenditures. This question is of interest because previous studies suggest that increasing household income, education, female labor participation and changing lifestyle especially in developing countries increased household FAFH consumption share but decreased food at home consumption share. However, no study to our knowledge has examined the combined effect of income, education, employment, and family status on Turkish FAFH consumption. The data for this research were obtained from personal interviews of representative sample households of the province of Adana in Turkey. The findings of this study generally indicate that restaurant facilities, employment of wife and education, composition of household, and income are statistically significant determinants of FAFH consumption.     

Demand for fish in Asia: a cross‐country analysis*

Fish demand patterns in nine Asian countries were investigated using a multistage budgeting framework allowing a disaggregated approach to analysing fish consumption. This paper highlights the heterogeneity of fisheries products in terms of species, sources and cultural responses of consumers, factors that are important in fish demand under the Asian setting. Specifically, fish demand by income groups were compared to determine how the low‐ and high‐income households respond to price and income changes. Results showed that the estimated price and income elasticities of all fish types included in the study were relatively more elastic among the poorer households.     

AGRICULTURAL EXPORTS OF DEVELOPING COUNTRIES: ESTIMATES OF INCOME AND PRICE ELASTICITIES OF DEMAND AND SUPPLY

This paper provides new evidence on income and price elasticities of demand and supply of agricultural exports from developing countries, on the basis of (a) a consistent and fully specified supply and demand model, and (b) statistical estimation procedures not frequently used in the estimation of agricultural export functions. Estimates of price and income elasticities of demand for aggregate agricultural exports for all developing countries taken together — as distinct from individual exporting countries — are found to be low; moreover, export price as distinguished from non-price factors plays a relatively insignificant role in increasing export supply. Hence, an attempt by all developing countries to expand traditional agricultural exports with low price elasticity of demand may not yield rising earnings for all; but in fact may result in falling export revenues. Insofar as individual exports of all developing countries (not individual countries) are concerned, income and price elasticities of demand for such tropical commodities as tea, coffee, cocoa and bananas are also found to be low, except for new, non-traditional exports like pineapples. This indicates the importance of diversification of agricultural exports as a vehicle for their future growth.     

Demand for animal‐derived food in selected Asian countries: A system‐wide analysis

Food consumption patterns in Asia show a trend away from staples toward high protein food derived from animal and dairy products, fruit and vegetables, fats and oils. Such changes in food consumption patterns are due to rising incomes, urbanization, globalization, and modernization of marketing infrastructure. In this article, we analyze the demand for the animal‐derived food group comprising meat (chicken, beef, pork, and mutton), eggs and fish, and derive income and price elasticities in seven Asian countries using the system‐wide approach. Demand homogeneity and Slutsky symmetry properties were tested and found to be compatible with the data. Our findings reveal that animal‐derived food as a group is a necessity (except in Taiwan) and its demand is price inelastic (except in Taiwan and Sri Lanka). The implied unconditional demand elasticities reveal that, in all countries (except beef in Japan and Taiwan), chicken, beef, pork, mutton, eggs and fish (except in Taiwan) are all necessities and the demand for all types of animal‐derived food in all seven countries are mostly price inelastic. The cross‐price elasticity estimates are mostly found to be positive, meaning that there is a higher degree of substitutability between chicken, beef, pork, mutton, eggs, and fish.     

茶籽油供需影响因素与弹性分析

依据经济学的需求和供给的基本原理,首先从价格、收入、替代品的价格及可获得性、消费者偏好和购买者数量等因素对茶籽油市场需求特性进行分析;其次从投入品价格、技术进步、相关物品的价格、政府政策和气候条件等5个方面对茶籽油供给特征进行深入剖析;然后,对茶籽油需求价格弹性、需求收入弹性和供给价格弹性进行分析;最后提出相应的政策建议。