On the correspondence between individual and aggregate food consumption functions: Evidence from the USA and the Netherlands

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This paper provides evidence from the US and Dutch budget surveys that income elasticity of family food consumption is a function of family income and other observable characteristics of the household. It also finds that the conditional variance of family food consumption depends on family income. This complicated pattern of dependence of family food consumption on income breaks the exact correspondence between the family and the aggregate food consumption functions. Simple dynamic models for aggregate food consumption are developed which are used for forecasting.

Original languageEnglish
Pages (from-to)477-507
Number of pages31
JournalJournal of Applied Econometrics
Issue number5
Publication statusPublished - 1 Jan 1997

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