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American Economic Review: Vol. 104 No. 3 (March 2014)

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Do Prices and Attributes Explain International Differences in Food Purchases?

Article Citation

Dubois, Pierre, Rachel Griffith, and Aviv Nevo. 2014. "Do Prices and Attributes Explain International Differences in Food Purchases?" American Economic Review, 104(3): 832-67.

DOI: 10.1257/aer.104.3.832

Abstract

Food purchases differ substantially across countries. We use detailed household level data from the US, France and the UK to (i) document these differences; (ii) estimate a demand system for food and nutrients, and (iii) simulate counterfactual choices if households faced prices and nutritional characteristics from other countries. We find that differences in prices and characteristics are important and can explain some difference (e.g., US-France difference in caloric intake), but generally cannot explain many of the compositional patterns by themselves. Instead, it seems an interaction between the economic environment and differences in preferences is needed to explain cross country differences.

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Online Appendix (45.06 KB) | Download Data Set (75.69 KB) | Author Disclosure Statement(s) (147.11 KB)

Authors

Dubois, Pierre (U Toulouse I Capitole)
Griffith, Rachel (IFS, London and U Manchester)
Nevo, Aviv (Northwestern U)

JEL Classifications

D12: Consumer Economics: Empirical Analysis
I12: Health Production
L11: Production, Pricing, and Market Structure; Size Distribution of Firms
L66: Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
Q11: Agriculture: Aggregate Supply and Demand Analysis; Prices


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