Price Elasticities of Food Demand: Compensated vs Uncompensated. (2nd September 2015)

• Record Type: Journal Article
• Authors: Clements, Kenneth W.; Si, Jiawei
• Is Part Of: Health economics. Volume 25:Number 11(2016)
• Page Start: 1403
• Page End: 1408
• Publication Date: 2015-09-02
• Subjects: food consumption -- price elasticity of demand -- compensated price elasticities; Medical economics -- Periodicals; Economics, Medical -- Periodicals; Health Care Costs -- Periodicals; Health Policy -- economics -- Periodicals; Health Services -- economics -- Periodicals; 362.1
• DOI: 10.1002/hec.3226
• Languages: English
• ISSNs: 1057-9230

Abstract

Abstract: Two recent studies have provided a comprehensive review/summary of a large number of estimates of the price elasticity of food consumption using a meta‐regression approach. In this letter, we introduce a way of removing the income effect from these elasticities to recover the compensated elasticities. Although the income effect is small, the compensated elasticities vary by income group. Both types of elasticity should possibly be considered when assessing the impact of policy changes on food consumption. Copyright © 2015 John Wiley & Sons, Ltd.