Engel’s Law, Diet Diversity and the Quality of Food Consumption

Kenneth Clements, Jiawei Si

Research output: Contribution to journalArticle

10 Citations (Scopus)
5 Downloads (Pure)

Abstract

Increasing income brings about a decline in the relative importance of food consumption, a wider spread of spending patterns, and a demand for higher-quality goods. Using an index-number approach, this article analyzes these three closely-related tendencies. Stripping out the impact of prices from the dispersion of food expenditures gives a volume-based measure of diet diversity that is relevant for nutrition. Using unpublished data from the World Bank's International Comparison Program for 31 items of food in more than 150 countries, we find that diets of rich countries are substantially more diverse than those of the poor; and that volumes are the more appropriate way to measure the inequality of diversity. The quality of the food basket, based on the luxury-necessity distinction of consumption, increases with income, but the elasticity is small. There is a modest tendency for the structure of prices to be regressive since prices of luxuries relative to necessities are lower in richer countries. Additionally, our diversity and quality measures are shown to have implications for demand analysis and well-being.
Original languageEnglish
Article number1
Pages (from-to)1-22
Number of pages22
JournalAmerican Journal of Agricultural Economics
Volume100
Issue number1
DOIs
Publication statusPublished - 1 Jan 2018

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Food Quality
food consumption
Diet
Food
income elasticities
diet
food purchasing
United Nations
Elasticity
Health Expenditures
food quality
income
Databases
nutrition
Food consumption
Luxury
Income

Cite this

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Engel’s Law, Diet Diversity and the Quality of Food Consumption. / Clements, Kenneth; Si, Jiawei.

In: American Journal of Agricultural Economics, Vol. 100, No. 1, 1, 01.01.2018, p. 1-22.

Research output: Contribution to journalArticle

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