AbstractWe conducted a meta‐analysis of food and agricultural demand elasticities for China, and used the results to derive estimates of income, own‐price, and cross‐price elasticities of demand that can be used in models of food and agricultural markets. Consistent with expectations, we find that income elasticities of demand for many food products decline as per capita income increases. The declines are relatively large for alcohol and tobacco, and smaller for livestock products. Contrary to expectations, own‐price elasticities for some products become more price‐elastic as per capita income increases. One explanation may be that economic development brings with it improvements in food supply chains that provide people more choices with respect to food products than those traditionally consumed in rural villages, leading to greater substitution possibilities and more price‐elastic demands. Estimates for 2011 of income and own‐price demand elasticities are generally reasonable, whereas deriving reliable estimates of cross‐price elasticities is difficult. The estimates suggest that China's meat and dairy demands, and in turn livestock feed demands, will continue growing strongly. Policy‐makers should continue to monitor the evolution of demand for these products with an eye toward ensuring food security, particularly given the sheer size of the population and relatively tight domestic food supply situation in China.
International audience ; This paper explores rural household food consumption behaviour in China using a large household data set from Jilin Province. Data are classified into four main food groups--grain, vegetable products, animal products and other foods. A household food demand system, incorporating four household characteristics, is estimated using an LA-AIDS model, assuming a three-stage budgeting procedure. Expenditure elasticities for a range of food groups are estimated, with a particular focus on animal products. The inclusion of household characteristics did not have a big impact on the elasticity values in any of the three stages of the budgeting process. The total expenditure elasticity for grain (stage II) was 0.64, suggesting substantial future growth in household demand for fine grains such as rice and wheat, as per capita incomes continue to grow in rural areas. The highest conditional and total expenditure elasticity values were for the animal products (stage II) group, 1.22 and 0.76 respectively. Within this group the elasticities were highest for the meat sub-group at 1.14 and 0.87 respectively, suggesting an almost proportionate increase in demand as household incomes grow. Added demand pressures from animal production will likely keep grain policy high on the political agenda.
This paper explores rural household food consumption behaviour in China using a large household data set from Jilin Province. Data are classified into four main food groups—grain, vegetable products, animal products and other foods. A household food demand system, incorporating four household characteristics, is estimated using an LA-AIDS model, assuming a three-stage budgeting procedure. Expenditure elasticities for a range of food groups are estimated, with a particular focus on animal products. The inclusion of household characteristics did not have a big impact on the elasticity values in any of the three stages of the budgeting process. The total expenditure elasticity for grain (stage II) was 0.64, suggesting substantial future growth in household demand for fine grains such as rice and wheat, as per capita incomes continue to grow in rural areas. The highest conditional and total expenditure elasticity values were for the animal products (stage II) group, 1.22 and 0.76 respectively. Within this group the elasticities were highest for the meat sub-group at 1.14 and 0.87 respectively, suggesting an almost proportionate increase in demand as household incomes grow. Added demand pressures from animal production will likely keep grain policy high on the political agenda.
The main purpose of this study is to estimate consumers' demand reactions in food retailing. To this end, price and income elasticities are of primary interest. These elasticities are estimated for various product groups and compared between different food retail formats. In addition, consumers' choices are modeled in regard to food retail formats (supermarkets versus discounters). The results provide valuable decision support for food retailing, policymakers and policy modelers. This cumulative, publication-based dissertation refers to three of the candidate's publications. The first essay "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria" is based on a very general and flexible demand model, which nests several well-known models including the Almost Ideal Demand System (AIDS), the Rotterdam model, the Central Bureau of Statistics (CBS) and the National Bureau of Research (NBR) model. This general model is applied to different product groups and different budgeting structures. Estimation results indicate that demand reactions, as expected, turn less strong the more aggregated the product groups are. Beyond this, the estimation results stress the importance of the underlying budgeting structure in demand models. It is shown that differences in the estimated elasticities of demand between studies may downsize remarkably once the same budgeting structures are considered. In the second essay "Price Sensitivity Within and Across Retail Formats", consumer demand reactions are compared between the two most important food retail formats, "conventional" supermarkets and discounters. This question has been largely neglected in literature so far. In particular, I investigate whether consumer responses to milk price changes are statistically different for discounters and supermarkets. Beyond this, price reactions across formats are considered as well, i.e. demand reactions in discounters to price changes in supermarkets and vice versa. Results indicate that significant differences between price reactions in supermarkets and those in discounters do exist. This holds true for both, inner-format reactions to price changes and responses to price changes across retailing formats. With regard to demand reactions to price changes for drinking milk, significant responses across formats illustrate the potential of drinking milk as a loss-leader product. As far as the third essay "Differentiation in Demand with Different Food Retail Formats" is concerned, potential differences in consumer behaviour for different food retail formats are analyzed regarding two main aspects. On the one hand, I analyze the factors which influence a household's likeliness to prefer shopping at a discounter to shopping at a supermarket. On the other hand, price elasticities of demand are estimated for nine different product groups in discounters and supermarkets, applying a method which includes the individual purchase probabilities. Results provide further indications for significantly different price elasticities between different retail formats. Beyond, supermarket demand is found to be more responsive to inner-format price changes than demand in discounters. However, demand reactions in discounters related to price changes in supermarkets are stronger than those in supermarkets when discounter prices are changed. Apart from this, results show that households with low levels of income and education are more likely to visit discounters, whereas younger people have a high preference for discounters despite spending less of their budget in discounters. Altogether, two main results can be emphasized. First, comparisons of demand studies must keep in mind the potential for any study's sensitivity to model and budget structure specification. Second, this study strongly points at the necessity to estimate demand reactions for each food retail format separately, whenever data availability allows for it. ; Das Hauptziel der vorliegenden Arbeit ist die Schätzung von Nachfragereaktionen im Lebensmitteleinzelhandel. Hierbei stehen Preis- und Einkommenselastizitäten im Vordergrund. Diese werden für verschiedene Produktgruppen geschätzt und zwischen unterschiedlichen Formaten des Lebensmittel-einzelhandels verglichen. Darüber hinaus werden Konsumentenentscheidungen hin-sichtlich des Einkaufs in unterschiedlichen Formaten des Lebensmitteleinzelhandels (Discounter gegenüber Supermärkten) modelliert. Die Ergebnisse liefern wertvolle Einsichten für den Lebensmittelmitteleinzelhandel, die Politik und modellbasierte Politikberatung. Den Kern dieser publikationsbasierten Dissertation bilden drei Artikel. Der erste Artikel "Using a Generalized Differenced Demand Model to Estimate Price and Expenditure Elasticities for Milk and Meat in Austria" basiert auf einem sehr allgemeinen Nachfragemodell, welches bekannte Modelle wie das Almost Ideal Demand System (AIDS), das Rotterdam Modell, das Central Bureau of Statistics (CBS) Modell und das National Bureau of Research (NBR) Modell beinhaltet. Dieses allgemeine Modell wird auf verschiedene Produktgruppen und Budgetierungsansätze angewandt. Als Ergebnis zeigen sich hierbei für höhere Produktaggregationsstufen erwartungsgemäß schwächere Reaktionen auf Preisänderungen. Die Schätzungen verdeutlichen außerdem die Bedeutung unterschiedlicher Budgetierungsansätze. Es wird insbesondere gezeigt, dass sich Unterschiede in den Ergebnissen zwischen Nachfragestudien verringern können, wenn unterschiedliche Budgetierungsstrukturen berücksichtigt werden. Im zweiten Artikel "Price Sensitivity Within and Across Retail Formats" werden Konsumentenreaktionen in den beiden wichtigsten Formaten des Lebensmitteleinzelhandels, in Supermärkten und Discountern, gegenübergestellt. Diese Fragestellung wurde bisher kaum erforscht. Insbesondere gehe ich der Frage nach, ob Preisreaktionen bei Milchprodukten zwischen Kunden von Discountern und Supermärkten statistisch signifikante Unterschiede aufweisen. Überdies wird die Wechselwirkung von Preisänderungen zwischen den beiden Formaten untersucht. Die Ergebnisse deuten darauf hin, dass zwischen Discounter- und Supermarktkunden in der Tat signifikante Unterschiede in den Reaktionen auf Preisänderungen bestehen. Dies gilt sowohl für Preisänderungen innerhalb eines Einzelhandelsformates, als auch für Preisänderungen zwischen den Formaten. Für Preisänderungen bei Trinkmilch ergeben sich signifikante Nachfragereaktionen zwischen den Formaten, was die mögliche Rolle dieses Produkts als Lockartikel unterstreicht. Im dritten Artikel "Differentiation in Demand with Different Food Retail Formats" werden potenzielle Unterschiede in den Verhaltensmustern der Kunden von Discountern und Supermärkten auf zwei wesentliche Aspekte hin untersucht. Einerseits wird erörtert, welche Haushaltscharakteristika die Wahrscheinlichkeit erhöhen, dass beim Einkauf ein Discounter einem Supermarkt vorgezogen wird. Andererseits werden für neun verschiedene Produktgruppen, jeweils in Discountern und Supermärkten und unter Berücksichtigung von Kaufwahrscheinlichkeiten, Preiselastizitäten geschätzt. Die Ergebnisse liefern weitere Hinweise auf signifikante Unterschiede in den Preiselastizitäten für verschiedene Formate. Zusätzlich deuten die Resultate darauf hin, dass die Nachfrage in Supermärkten signifikant stärker auf Preisänderungen innerhalb der Supermärkte reagiert als dies für die Nachfrage in Discountern bei Discounter-Preisänderungen der Fall ist. Andererseits jedoch fallen Nachfragereaktionen in Discountern auf Preisänderungen in Supermärkten tendenziell stärker aus als jene in Supermärkten bei Preisänderungen in Discountern. Es wird außerdem ersichtlich, dass einkommens- und bildungsschwächere Haushalte eine höhere Präferenz für Discounter aufweisen, während jüngere Konsumenten zwar eine hohe Präferenz für Discounter besitzen, jedoch einen kleineren Anteil ihres Budgets dort ausgeben. Insgesamt lassen sich zwei wesentliche Punkte festhalten. Zum einen wird in dieser Dissertation gezeigt, dass Vergleiche zwischen Nachfrageuntersuchungen stets die methodische Sensibilität der empirischen Ergebnisse beachten sollten, insbesondere hinsichtlich des Budgetierungsansatzes. Andererseits belegt diese Arbeit auch, dass eine getrennte Betrachtung verschiedener Einzelhandelsformate eminent wichtig für die präzise Schätzung von Nachfragereaktionen sein kann.
Food is a basic need and access to food is a human rights that must be fulfilled. Meeting food needs is the main target of food policy carried out by the government, especially for the poor household. One of the government's policies in terms of food is Non-Cash Food Assistance (BPNT). The purpose of this study was to analysis the food demand for BPNT's beneficiary household and not receiving BPNT. This study used primary data on food consumption with the highest share of expenditure of poor households in Bogor City. Demand for food was estimated by LA-AIDS (Linear Approximation Almost Ideal Demand System) model. The results this study showed that there were significant differences in the average consumption of rice, non-rice and animal protein consumption between BPNT and non-BPNT households. The highest of food expenditure in both households was processed food and beverages. The BPNT dummy variable did not sign for a share of food expenditure. The result of the estimate also showed that rice, animal protein, vegetables, food and beverages and cigarettes are inelastic at their prices elasticity. All types of food studied were normal goods. Non-rice, vegetables and processed food and beverages were substitutes for rice in BPNT recipient households while in non-BPNT only processed food and beverages was substitutes for rice. The interesting thing in this research was that cigarettes become a complimentary item to all foods. ; Food is a basic need and access to food is a human rights that must be fulfilled. Meeting food needs is the main target of food policy carried out by the government, especially for the poor household. One of the government's policies in terms of food is Non-Cash Food Assistance (BPNT). The purpose of this study was to analysis the food demand for BPNT's beneficiary household and not receiving BPNT. This study used primary data on food consumption with the highest share of expenditure of poor households in Bogor City. Demand for food was estimated by LA-AIDS (Linear Approximation Almost Ideal Demand System) model. The results this study showed that there were significant differences in the average consumption of rice, non-rice and animal protein consumption between BPNT and non-BPNT households. The highest of food expenditure in both households was processed food and beverages. The BPNT dummy variable did not sign for a share of food expenditure. The result of the estimate also showed that rice, animal protein, vegetables, food and beverages and cigarettes are inelastic at their prices elasticity. All types of food studied were normal goods. Non-rice, vegetables and processed food and beverages were substitutes for rice in BPNT recipient households while in non-BPNT only processed food and beverages was substitutes for rice. The interesting thing in this research was that cigarettes become a complimentary item to all foods.
Since 1984, the ratio of demand for food away from home to demand for food at home in the United States has increased significantly. The relative increase in the demand for food away from home may be a major contributing factor to the growing obesity problem in the United States. To address this problem, the government passed a law requiring restaurants to report caloric values on their menus. I estimate an almost ideal demand system to investigate whether the Nutritional Labeling Provision of the Affordable Care Act has been effective in increasing the demand for food at home relative to the demand for food away from home. I do not find evidence that the Nutritional Labeling Provision has had the intended effect.
Public food procurement policies and initiatives designed to use government purchasing power and regular demand for food have gained much global attention in the last decade [.]
The questions strengthening of world globalization, which, in turn, requires the development of measures to prevent threats to food sector. Given the generalization of scientific positions to address key issues like food security in the world and in Ukraine, substantiates the need to generalize the theoretical basis of formation of supply and demand on the food market of Ukraine and determine the measures to provide the population with quality, ecologically food including external and internal factors impact on the development of national food market.The trends of the dynamics of global food price increase in population in most developing countries. Determined that Ukraine with its resource factors, has a special place in the world food process, but indicators of food security in the country deteriorate, actual consumption of most basic kinds of food below rational norms confirming unbalanced nutrition. It is emphasized that the country's food system based on food production without regard to the laws of supply and demand, branching system of obtaining natural products in households, breach of relations between producers and processors, emphasizing the need for a detailed study of the factors creating demand and supply food market Ukraine.The theoretical aspects of the impact on the value of supply and demand as the main factors of the food market, endogenous and exogenous factors and specific factors of the market, namely the strategic importance of food, the level of which depends on providing social, political and economic stability in the country ; consistency demand for food in seasonal and non-uniformity of production for years what led to the need to create reserves and reserve funds for the stable maintenance of the population; Reliance food production from the effects of weather and its inability to neutralize even at the present level of scientific and technological progress; mismatch between supply and consumption, on the one hand, and the possibilities of food, on the other, leading to the need for expansion and improvement of inter-regional and international food and commodity relations on the basis of the territorial division of labor elasticity of demand for certain types of food is substantially depending on the solvency of the population and is at the same time relatively constant.Revealed the need for the country's participation in various formations and WTO integration in modern conditions of world globalization process that enhances market opening, changes in situation on the global food market.Attention is given to the average non-caloric diet nutrition health regulations, the consumption of animal products in recent years is only a quarter of the thresholds of consumption. Determined that the cost of food is the most important article of total household spending (about 55%), it was found that the rural population consumes more potatoes (1.7 times), bread and cereal products (1.3 times), vegetables and melons (1.2 times). It was established that the change in real per capita income indicates the economic situation in the country and does not determine the proportional change in demand for food, and is reflected in the dynamics of demand for food as the income elasticity of demand. Grounded trend increase in demand for more expensive products, mainly animal with an increase in income, while the emergence of excess supply in the market domestic production of potatoes, bread and bakery products.It is emphasized that the identification of the factors in the formation of supply and demand on the national food market will determine the balance of the food market by matching the effective demand and commodity supply, taking into account the strengthening of the role of government influence.Grounded to provide the population with quality, ecologically food, the need to harmonize the regulatory framework maintaining appropriate levels of quality and competitiveness of domestic food with international standards. The necessity of introducing efficient mechanism to protect the domestic market against imports of products that do not meet the established standards, expansion of state incentives and financial support for the development of organic food production, market expansion and the creation of a national certification.
