Year: 2014
Type: preprint
Study design: Observational Study
Abstract: After falling through the 1970s and 80's, the share of vegetables consumed fresh rather than preserved has risen steadily from 47 percent to 57 percent between 1991 and 2009.While trade liberalization and cost shifts are likely to have played some significant role in this shift, rising incomes have also allowed consumers to substitute towards higher value fresh products.To estimate the role income growth in explaining this shift, we use household panel data for 25 fresh and preserved vegetable commodities to estimate a disaggregated censored EASI demand system with non-linear Engel curves to consider what share of fresh consumption growth is attributable to income growth as opposed to price shifts.In general, we find that our estimated incomes elasticities are significantly smaller for preserved vegetables on a commodity by commodity basis implying that fresh goods will represent a large share of consumer expenditure as incomes grow over time.
Authors: Ferrier, Peyton, Zhen, Chen
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
SDG: Zero hunger
Open Access status: green
OpenAlex ID: W585221395