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Article
Publication date: 16 November 2012

James L. Seale, Junfei Bai, Thomas I. Wahl and Bryan T. Lohmar

The purpose of this paper is to analyze the income sensitivity of food consumption in Beijing, China, using an original household survey data set collected by the Chinese Academy…

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Abstract

Purpose

The purpose of this paper is to analyze the income sensitivity of food consumption in Beijing, China, using an original household survey data set collected by the Chinese Academy of Sciences.

Design/methodology/approach

An Engel curve model is fit to the household data of nine food categories and 35 food items, and both conditional and unconditional expenditure elasticities of demand are calculated and reported for the nine food groups and the 35 food items.

Findings

Working's model fits the data well, and the elasticity estimates are all reasonable in terms of economic theory, size and signs. The results indicate a relative large range in income sensitivity among the nine food groups and 35 food items in response to changes in household food expenditure levels.

Originality/value

The research analyzes unique and rich urban household survey data collected by the Chinese Academy of Sciences and is the most comprehensive analysis to date in terms of the number of food items studied for which expenditure elasticities are calculated. These elasticities may be used to study household food consumption patterns, to calculate caloric or nutrient elasticities, to study obesity in China, to study policy prescriptions in terms of taxes and subsidies on food, to infer welfare and affluence, and may be used as inputs into econometric models such as those used by the World Bank, IFPRI, and others.

Details

China Agricultural Economic Review, vol. 4 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 16 November 2012

Wei Chen, Mary A. Marchant and Andrew Muhammad

The purpose of this paper is to estimate China's demand for imported soybeans and soybean oil from both country‐of‐origin and product form perspectives.

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Abstract

Purpose

The purpose of this paper is to estimate China's demand for imported soybeans and soybean oil from both country‐of‐origin and product form perspectives.

Design/methodology/approach

A differential production approach is used to estimate China's demand for imported soybeans and soybean oil. The empirical demand estimates are then used to derive conditional and unconditional elasticities of demand for each exporting country with respect to changes in domestic and import prices, and the price of resources used in soybean meal and oil production.

Findings

Results indicate that both country‐of‐origin and product form competition exist in the Chinese market. Estimation results indicate that China's soybean meal prices significantly impacted its soybean and soybean oil imports. Seasonality is detected in China's soybean imports, but not in soybean oil imports.

Practical implications

The findings suggest that, in addition to country‐of‐origin competition, product form competition should be considered when analyzing China's soybean demand.

Originality/value

This paper contributes to a better understanding of China's soybean import market by integrating both country‐of‐origin competition and product form competition into a single demand framework.

Details

China Agricultural Economic Review, vol. 4 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 2 December 2022

Christian H. Kuhlgatz, Jiaqi Huang and Gerrit Antonides

The purpose of this paper is to evaluate the effects of price and income changes on food and nutrient demand of rural households by including own-produced food and production-side…

Abstract

Purpose

The purpose of this paper is to evaluate the effects of price and income changes on food and nutrient demand of rural households by including own-produced food and production-side effects in the demand estimation to correct potential measurement bias in the income and price elasticities for rural households in underdeveloped areas. Simulation results of income and grain price changes on food and nutrition security are provided for economic nutrition security policy applications.

Design/methodology/approach

This study analyzes survey data of 1,555 households from underdeveloped rural areas of China to find out how price and income changes affect food and nutrition insecurity of rural households. The authors employ the quadratic almost ideal demand system (QUAIDS) in a two-stage budgeting framework, using quality adjusted prices that were retrieved with regressions of the difference between the unit value surveyed at household level and its village average on household characteristics. The bias correction is implemented by using an augmented IV (instrumental variable) method, in which each market price is instrumented with farm-specific variables. Important macro- and micronutrient elasticities are computed for (a) households with agriculture as main income and (b) other households (of which still many have agriculture as a side business). Finally, the authors use these elasticities to simulate how changes in income or grain prices affect the food and nutrition security in the studied areas.

Findings

In general, food income elasticities of agricultural households are at a higher level than those for other households, and so are the food price elasticities. Income changes also have a greater nutritional effect on agricultural households than on other households. Nutrient income elasticities ranged from 0.22 (energy) to 0.27 (Vitamin A) for agricultural households and from 0.19 (energy) to 0.23 (Vitamin A) for other households. Grain price increases have greater effect on nutritional status of non-agricultural households, while a grain price reduction is not clearly favoring the nutritional situation of a particular household group.

Originality/value

This demand study contributes to the literature by taking into account differences in consumption of own production between households and the potential endogeneity of prices resulting thereof. The authors also demonstrate that merely reporting nutrient elasticities might not be sufficient for policy recommendations, and simulations should be reported as a valuable addition.

Details

China Agricultural Economic Review, vol. 15 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 10 April 2017

Adam Hoffer, Rejeana Gvillo, William Shughart and Michael Thomas

The purpose of this paper is to identify how consumption of 12 goods – alcohol, cigarettes, fast food, items sold at vending machines, purchases of food away from home, cookies…

Abstract

Purpose

The purpose of this paper is to identify how consumption of 12 goods – alcohol, cigarettes, fast food, items sold at vending machines, purchases of food away from home, cookies, cakes, chips, candy, donuts, bacon, and carbonated soft drinks – varies across the income distribution by calculating their income-expenditure elasticites.

Design/methodology/approach

Data on 22,681 households from 2009-2012 from the Bureau of Labor Statistics’ Consumer Expenditure Survey were used. The data were analyzed using ordinary least squares regressions and Cragg’s double hurdle model which integrates a binary model to determine the decision to consume and a truncated normal model to estimate the effects for conditional (y>0) consumption.

Findings

Income had the greatest effect on expenditures for alcohol (0.314), food away from home (0.295), and fast food (0.284). A one percentage-point increase in income (approximately $428 at the mean) translated into a 0.314 percentage-point increase in spending on alcoholic beverages (approximately $1 annually at the mean). Income had the smallest influence on tobacco expenditures (0.007) and donut expenditures (−0.009).

Research limitations/implications

Percentage of a household’s discretionary budget spent on the studied goods falls substantially as income gets larger. Policies targeting the consumption of such goods will disproportionately impact lower income households.

Originality/value

This is the first manuscript to calculate income-expenditure elasticities for the goods studied. The results allow for a direct analysis of targeted consumption policy on household budgets across the income distribution.

Details

Journal of Entrepreneurship and Public Policy, vol. 6 no. 1
Type: Research Article
ISSN: 2045-2101

Keywords

Book part
Publication date: 23 September 2005

John A. Tauras, Sara Markowitz and John Cawley

This chapter examines the impact of cigarette prices, taxes, and tobacco control policies on youth and young adult smoking propensity and intensity in the U.S. during the years…

Abstract

This chapter examines the impact of cigarette prices, taxes, and tobacco control policies on youth and young adult smoking propensity and intensity in the U.S. during the years 1997–2001, a period characterized by significant changes in cigarette prices and tobacco control policies. Employing a fixed effects technique, we find a strong negative impact of cigarette prices and taxes on youth and young adult smoking prevalence and conditional demand. Moreover, we find purchase, use, and possession laws to be inversely related to youth and young adult smoking prevalence.

Details

Substance Use: Individual Behaviour, Social Interactions, Markets and Politics
Type: Book
ISBN: 978-1-84950-361-7

Article
Publication date: 23 May 2023

Lei Li, Junfei Bai and Qiubo Zhu

The purpose of this study is to assess the impact of rising food prices on food demand and nutrient intake among rural–urban migrants and whether such impact varies across income…

Abstract

Purpose

The purpose of this study is to assess the impact of rising food prices on food demand and nutrient intake among rural–urban migrants and whether such impact varies across income classes.

Design/methodology/approach

Using data from the China Health and Nutrition Survey (CHNS), this study adopts a quadratic almost ideal demand system (QUAIDS) for food demand elasticity and an indirect estimation method for nutrient elasticity to investigate the effects of rising food prices on food demand and nutrient intake among rural–urban migrants.

Findings

The estimated results indicate that an increase in the price of pork alone would lead to a larger reduction in most nutrients among rural–urban migrants than other single targeted food group, and a simultaneous rise in the price of all food groups would have a remarkably adverse effect on the nutritional status of rural–urban migrants in comparison to the nutritional effects of a rise in one targeted food group. In addition, the nutritional effects of food prices across income classes show that the nutritional status is particularly vulnerable to rising food prices among low-income rural–urban migrants.

Originality/value

This paper focuses on analyzing the impact of rising food prices on the nutritional status of rural–urban migrants, a topic that is very limited in the literature. This study provides a fresh look at the effect of volatile food prices on food demand and nutrient intake among rural–urban migrants. The results indicate that income growth would have a remarkable positive effect on nutrient intake for rural–urban migrants, especially for low-income rural–urban migrants. However, an increment in nutrients due to a growth in income would not be far from enough to cover the reduction in nutrients as a result of a simultaneous rise in price of all the studied food categories at the same rate.

Details

China Agricultural Economic Review, vol. 15 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 1 December 2005

Mohamadou L. Fadiga, Sukant K. Misra and Octavio A. Ramirez

The purpose of this is study is to identify sources of demand growth for apparel in the US based on consumer demographic profiles, regions, and product characteristics.

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Abstract

Purpose

The purpose of this is study is to identify sources of demand growth for apparel in the US based on consumer demographic profiles, regions, and product characteristics.

Design/methodology/approach

A two‐step procedure was utilized to model, estimate, and analyze purchasing decision and consumer demand for nine apparel products (male shirts, shorts, jeans and slacks and female slacks, skirts, shorts, dresses and jeans). This study is based on a survey conducted by the American shoppers' panel, which collects consumption data of various garments, socioeconomic profiles, and product characteristics.

Findings

The results indicate that purchase decisions are determined by garments' own prices, age, female employment, gender, regions, and the presence of children. The study also shows evidence that the effect of product‐specific pricing strategies would be limited to the targeted products and the origin of the product has minimal effect on consumer expenditures on apparel.

Originality/value

This study is one of the few that have used disaggregated apparel products and detailed demographic factors, thus has clear marketing implications and can be useful to the apparel industry.

Details

Journal of Fashion Marketing and Management: An International Journal, vol. 9 no. 4
Type: Research Article
ISSN: 1361-2026

Keywords

Article
Publication date: 27 January 2012

Junfei Bai, Caiping Zhang, Fangbin Qiao and Tom Wahl

The purpose of this paper is to investigate factors influencing household food consumption away from home in Beijing by type of food facility and type of meal.

Abstract

Purpose

The purpose of this paper is to investigate factors influencing household food consumption away from home in Beijing by type of food facility and type of meal.

Design/methodology/approach

Derived from the Becker's household production and consumption theory, the authors econometrically specified household expenditure function on food away from home. Box‐Cox transformed double‐hurdle models were estimated. The data were collected in 2007 in Beijing China by the authors, using a diary‐based method designed specifically for this study.

Findings

Household income, time opportunity cost and other socio‐demographic and economic factors were found to be important determinants of household participation and expenditure decisions for dining out. However, the importance of these factors varied by type of food facility and type of meal. Meanwhile, the estimated elasticities with respect to income were correspondingly higher than those for developed countries, suggesting that the demand for food away from home by Chinese households is still in an upward trend.

Originality/value

To the best of the authors' knowledge, this study is the first to analyze Chinese household food consumption away from home by type of food facility and type of meal. Besides, this study uses an exclusive dataset collected from a seven‐day diary‐based survey. The data include more specific information on food away from home than the Urban Household Income and Expenditure (UHIE) survey data conducted by National Bureau of Statistics of China. The UHIE data were extensively used in previous studies on food consumption in China, but are believed to significantly underestimate food away from home consumption.

Details

China Agricultural Economic Review, vol. 4 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 4 July 2016

Faical Akaichi and Cesar Revoredo-Giha

The purpose of this paper is to assess Scottish consumers’ demand for animal welfare and organic pork. The paper also tried to answer the following questions: first, are…

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Abstract

Purpose

The purpose of this paper is to assess Scottish consumers’ demand for animal welfare and organic pork. The paper also tried to answer the following questions: first, are animal-friendly pork and organic-pork complements or substitutes (competing)? Second, what is the relationship between pork products with different animal welfare labels (i.e. “freedom food” pork vs “specially selected pork”)? Third, does the demand for animal-friendly and organic pork vary with the level of deprivation of the area where consumers are living?

Design/methodology/approach

The dataset used in the analysis is the Kantar Worldpanel dataset for Scotland, which contains weekly data of food and drink purchases for consumption at home, covering the period 2006-2011. The panel is representative of the Scottish population and covers about 3,694 households. The linear version of the almost ideal demand system was estimated. Then, the own- and the cross-price elasticities as well as the expenditure elasticities for the 22 food categories and products were computed.

Findings

The results indicate that when the price of animal-friendly pork increases, consumers decrease their consumption of this product and substitute it by organic pork or regular pork, especially in the case of fresh pork, bacon and sausages. It was found that products with different animal welfare accreditation are substitutes in the eyes of Scottish consumers and are, therefore, competing for the market share of animal-friendly foods. The results also show that the demand for animal-friendly pork is more elastic in the most deprived areas in Scotland.

Originality/value

To the best of the authors’ knowledge, this is the first study that estimates the demand for conventional, animal-friendly and organic pork using a scanner data in Scotland and controlling for the variation by area of deprivation.

Details

British Food Journal, vol. 118 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 11 May 2020

Asankha Pallegedara and Ajantha Sisira Kumara

Compared to other neighbouring South Asian countries, Sri Lanka performs well in terms of education outcomes. Education is provided by the government for free from primary school…

Abstract

Purpose

Compared to other neighbouring South Asian countries, Sri Lanka performs well in terms of education outcomes. Education is provided by the government for free from primary school level to the first-degree University level, yet households’ private education expenses are steadily increasing over time. Thus, this paper analyses trends and determinants of household private education expenditures using the country-wide micro-data from 1990 to 2013.

Design/methodology/approach

Using Household Income and Expenditure Survey (HIES) 1990/91, 2002 and 2012/13 data along with annual school census data, this paper examines the relationship between private education expenditure patterns and the observed changes of reported both demand-side and supply-side factors. In particular, the present paper analyses determinants of household private education expenditures within the two-part model econometric framework by taking into account location and time fixed-effects.

Findings

The results show that trend of spending privately for education is increasing over time with rising household income. Rural, Tamil and Islamic households and those headed by less-educated members are less likely to spend privately for education. The results also confirm that improved-supply-side factors can significantly lower the household burden arising from out-of-pocket education expenditure.

Research limitations/implications

Unavailability of panel data and missing data on several districts due to security concerns are limitations of the study.

Social implications

The trend of increasing private education expenses has implications on equity concerns of education in Sri Lanka, and it can undermine the purpose of free public education policy.

Originality/value

To our knowledge, this is the first study for Sri Lanka that examines patterns and determinants of private education expenditures using nationwide data for last two decades. This paper applies novel econometric techniques to account for various issues in household survey data analysis.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-07-2019-0445

Details

International Journal of Social Economics, vol. 47 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

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