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1 – 10 of over 2000
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: 28 August 2009

Kuo S. Huang and Fred Gale

China's remarkable income growth has changed the food landscape in recent years. Chinese consumers are demanding greater food quantity and quality and changing the nutrient…

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Abstract

Purpose

China's remarkable income growth has changed the food landscape in recent years. Chinese consumers are demanding greater food quantity and quality and changing the nutrient content of their diets. Most food demand studies are based on data from earlier time periods before these structural changes had taken hold. The purpose of this paper is to show how the rapid change in food markets and surprisingly slow growth of food imports warrants a new assessment of food demand in China.

Design/methodology/approach

Engel equations measuring elasticities of food quantity and quality purchases with respect to household income are estimated. These estimates are then converted to nutrient elasticities to show how the availability of nutrients varies with income based on the Engel demand relationship.

Findings

The income elasticities diminish as income rises. Households in the top tier of the income distribution appear to have reached a saturation point in the consumption of most food items. As income rises, most additional spending is on foods with higher unit values that may reflect better cuts of meat or branded items. The pattern of food purchases for households at different income levels suggests that protein, saturated fat, and cholesterol intake rises with increased income. The change in diets prompted by rising income is most pronounced for low‐income households.

Originality/value

This paper applies a unique approach to measure income, quality, and nutrient elasticities within the same framework of Engel relationship. The finding has important implications for opening new market opportunities of imported foods and understanding dietary change in China.

Details

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

Keywords

Article
Publication date: 13 November 2017

Faharuddin Faharuddin, Andy Mulyana, M. Yamin and Yunita Yunita

The purpose of this paper is to assess nutrients elasticities of calories, proteins, fats, and carbohydrates in Indonesia.

Abstract

Purpose

The purpose of this paper is to assess nutrients elasticities of calories, proteins, fats, and carbohydrates in Indonesia.

Design/methodology/approach

Quadratic Almost Ideal Demand System is used on Indonesian socioeconomic household survey data.

Findings

Expenditure elasticities of nutrients in overall model range from 0.707 (for carbohydrates) to 1.085 (for fats), but expenditure elasticities in rural areas are higher than those in urban area. Most of price elasticities of nutrients have very small absolute value (not elastic) and all values are lower than the expenditure elasticities. However, the price of five groups of food commodities, namely, rice, oil and grease, fishes, meat, and other foods give significant influence on nutrients consumption.

Research limitations/implications

This research only includes four micronutrients, namely, calorie, protein, fat, and carbohydrate.

Originality/value

This research is one of very limited literatures about nutrient elasticity of food consumption in Indonesia.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 7 no. 3
Type: Research Article
ISSN: 2044-0839

Keywords

Article
Publication date: 30 January 2009

Abiodun Elijah Obayelu, V.O. Okoruwa and O.I.Y. Ajani

The purpose of this paper is to examine the impact of socio‐economic variables on households' food demand. This paper derived the indirect utility function in terms of expenditure…

Abstract

Purpose

The purpose of this paper is to examine the impact of socio‐economic variables on households' food demand. This paper derived the indirect utility function in terms of expenditure and price through the use of nonlinear demand quadratic almost ideal demand system (QUAIDS) model to estimate price, expenditure and elasticities of food items consumed in the North‐Central, Nigeria, and the impact of the socio‐economic variables on households' food demand.

Design/methodology/approach

The primary data used came from random selection of 396 households between 2006 and 2007 through a stratified random sampling procedure from Kwara and Kogi states making up the North Central zone in Nigeria.

Findings

All own price elasticities of the six food groups analyzed (root and tubers – RT, cereal – CR, legume – LG, animal protein – AP, fruits and vegetable – FV, fats and oil) showed that they are price inelastic. The results of income elasticity show that AP consumption is the most sensitive to income changes, while fats and oil is the least sensitive to income changes. Factors that positively and significantly affected demand for LG, FV, AP, CR and RT were household size (HSZ), level of education, primary occupation, access to credit, presence of children ≤6 years mainly at P<0.01. HSZ (P<0.01) negatively affected demand for AP.

Originality/value

This paper is original and novel in that it examines the impact of socio‐economic variables on households' food demand. High‐income elasticities of demand for all the food groups in QUAIDS except fruits and vegetable, as well as fats and oils, suggests that income‐generating policies will foster higher levels of consumption for these commodities.

Details

China Agricultural Economic Review, vol. 1 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 3 August 2010

Hisham S. El‐Osta

The purpose of this paper is to use data from the 2007 Agricultural Resource Management Survey to assess the inequality in the distribution of farm family living expenditures. The…

Abstract

Purpose

The purpose of this paper is to use data from the 2007 Agricultural Resource Management Survey to assess the inequality in the distribution of farm family living expenditures. The impact on inequality of marginal increases in expenditure components with respect to aggregate expenditures is also addressed in the context of the life cycle and under various “equity” weights that reflect the extent to which society is averse to inequality.

Design/methodology/approach

Inequality in the distribution of households' equivalent‐scale total expenditures E and of their K components is measured using the concept of the extended Gini coefficient (GE).

Findings

Results show an unequal distribution of total expenditures, with “food including food away from home” and “clothing, personal care products, etc.” as the two expenditure items that are most suitable for either a subsidy or a tax‐hike. No discernable statistical difference is found when the elasticities of expenditures were estimated across two distinct age‐groups and across various levels of “equity” weights.

Research limitations/implications

Research is based on cross‐sectional data and does not allow for dynamic assessment of expenditure elasticities.

Originality/value

The paper describes the use of an innovative non‐parametric method to estimate expenditure elasticities among farm households.

Details

Agricultural Finance Review, vol. 70 no. 2
Type: Research Article
ISSN: 0002-1466

Keywords

Article
Publication date: 20 July 2015

Azzeddine Azzam and Belaid Rettab

The purpose of this paper is to estimate a complete demand system for the United Arab Emirates (UAE) and use the estimates to evaluate the welfare impact of price inflation. Eight…

Abstract

Purpose

The purpose of this paper is to estimate a complete demand system for the United Arab Emirates (UAE) and use the estimates to evaluate the welfare impact of price inflation. Eight expenditure groups are considered: food, clothing, housing, furniture, transportation, medical care, recreation, and miscellaneous.

Design/methodology/approach

Household survey data are used to estimate the elasticities separately for Emiratis and expatriates by income quintile using seemingly unrelated regression within a Linear Expenditure System that accounts for demographic variables.

Findings

Welfare loss is inversely related to income quintile and is lower for Emirati households. Transportation, housing, and food are the sources of the bulk of the welfare loss. The shares of the three consumption groups, combined with their respective inelastic demands, explain why they figure prominently as the leading sources of welfare loss when their prices rise.

Originality/value

First ever demand system estimated for the UAE. Welfare loss estimates provide some rational basis on which examination may be made of existing UAE policies that effect commodity prices, like price controls, and policies currently being discussed, like commodity taxation, and their distributional effects.

Details

International Journal of Emerging Markets, vol. 10 no. 3
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 30 July 2018

Yanjun Ren, Yanjie Zhang, Jens-Peter Loy and Thomas Glauben

Given the fact that the income disparity has become extremely severe in rural China, the purpose of this paper is to examine heterogeneity in food consumption among various income…

Abstract

Purpose

Given the fact that the income disparity has become extremely severe in rural China, the purpose of this paper is to examine heterogeneity in food consumption among various income classes and to investigate the impact of changes in income distribution patterns on food demand in rural China.

Design/methodology/approach

In this study, the authors partition the households into five income classes according to the distribution of household per capita net income. Using household data drawn from the China Health and Nutrition Survey in 2011, a two-stage demand model is applied to estimate a food demand system for each of the income classes. After obtaining the estimated income elasticities of eight studied food groups for each income class, the authors then examine the responsiveness of food demand to the changes in income distribution by means of four scenarios with varying income distribution.

Findings

The empirical results indicate that substantial differences in food consumption exist across various income classes. Specifically, the lowest-income households are more sensitive to price and income changes for most studied food groups than the highest-income households are. In general, income responsiveness is higher for meats, aquatic products and dairy products. Based on estimated income elasticities, the projected food consumption under different income distribution patterns shows that changes in income distribution have significant influences on food consumption. In addition, the authors conclude that a more equal distribution of income would be associated with a higher demand for food in rural China.

Originality/value

This paper employs a two-stage demand model to estimate food demand in rural China by income classes. The results imply substantial differences in food demand for various income classes. Therefore, income distribution should be taken into account instead of an average estimation for the population as a whole when investigating food demand in rural China. Given the significant changes in income distribution in rural China, this study provides several important policy implications to alleviate income inequality and poverty, as well as to improve nutrition for lower-income classes.

Details

China Agricultural Economic Review, vol. 10 no. 3
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: 13 November 2017

Narayana Muttur Ranganathan

Population ageing, extended coverage of beneficiaries and rise in benefit levels of a public-funded universal social pension scheme (USPS) for elderly individuals may exert fiscal…

Abstract

Purpose

Population ageing, extended coverage of beneficiaries and rise in benefit levels of a public-funded universal social pension scheme (USPS) for elderly individuals may exert fiscal pressures on India’s General Government. Using accounting frameworks, this paper aims at an assessment of public expenditure requirements of USPS scenarios in the short term and their long-term implications for fiscal sustainability.

Design/methodology/approach

Short-term public expenditure requirements are quantified for the current pension scheme and proposed USPS scenarios, if pension benefits are adjustable for official poverty line, per capita income, the inflation rate and income elasticity of public pension expenditure. Long-term fiscal sustainability is determined by the methodology of generational accounting.

Findings

Public expenditure requirements for the USPS scenarios are remarkably higher as compared to the current expenditure on the Indira Gandhi National Old Age Pension Scheme (IGNOAPS). Short-term analyses offer economic justifications for an increase in pension benefits either by a single adjustment factor or combined adjustment factors but at a cost of remarkable increase in public expenditure requirements. Long-term analyses show that the IGNOAPS and proposed USPS scenarios are fiscally sustainable but sensitive to five parameters (productivity growth, inflation rate, discount rate, income elasticity public pension expenditure and income elasticity of health expenditure). A policy mix of these parameters leads to fiscal sustainability of the IGNOAPS and proposed USPS scenarios with differential impacts on inter-generational distribution of welfare by tax and transfer adjustments.

Research limitations/implications

Application of the generational accounting methodology is new for India’s pension economics and may have applicability and relevance for future extensions and analyses of other fiscal policy issues. This paper sets a benchmark for such extensions and applications.

Practical implications

The analyses and implications offer economic justifications for increase in levels of pension benefits by the current pension scheme and proposed USPS scenarios, introduction of sustainable USPS scenarios under current fiscal policies and choice of design parameters for a fiscally sustainable USPS.

Social implications

Social pensions have implications for providing income security and livelihood benefits for all elderly civilians in society.

Originality/value

The paper adds to the existing knowledge on economic analyses and fiscal implications of India’s old age pension policies in general and social pension policies in particular. Subject to the comparability of socio-economic structures and pension programmes, the methodology and public policy analyses of this paper may be of relevance and applicability for developing countries in Asia.

Details

Indian Growth and Development Review, vol. 10 no. 2
Type: Research Article
ISSN: 1753-8254

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

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