AbstractsEconomics

The Canadian demand for healthy and unhealthy food: a comparison of food elasticity estimates using several different functional forms.

by Anya Lundy




Institution: McGill University
Department: Department of Agricultural Economics
Degree: MS
Year: 2015
Keywords: Economics - General
Record ID: 2061796
Full text PDF: http://digitool.library.mcgill.ca/thesisfile130626.pdf


Abstract

The primary goal of this research was to assess the Canadian demand for healthy and unhealthy food by income group, and analyze how sensitive the population is to changes in prices and expenditure. The analysis extends the work of Pomboza and Mbaga (2007) by further grouping food categories into healthy and unhealthy categories and by applying several alternative functional forms to the study of the 2001 Food Expenditure Survey and the Survey of Household Spending.In order to lower the occurrence of specification issues, five methods were considered for this analysis. The Engel curve, the Rotterdam model, the Almost Ideal Demand System (AIDS), the linearized approximation of the Almost Ideal Demand System (LAIDS) and the Quadratic Almost Ideal Demand System (QUAIDS) were all considered in terms of (1) economic theory criteria, (2) range of the elasticities, and (3) the goodness of fit of the model. Out of all five models, the AIDS model performed best. Cet étude cherche d'évaluer la demande Canadienne pour les aliments sains vs. les aliments malsains trié selon revenus, et d'analyser la sensibilité de la population aux changements de prix et de dépenses. L'analyse est une extension du travail de Pomboza et Mbaga (2007), en regroupant davantage les aliments dans les catégories sains et malsains, et en appuyant plusieurs formes fonctionnelles alternatives à l'étude "Food Expenditure Survey and the Survey of Household Spending" datant de 2001. De ces cinque modèles, AIDS était celui qui est le mieux-adapté.Afin de diminuer l'occurrence des problèmes de spécification, cinq méthodes ont été considérées pour cette analyse. La courbe Engel, le modèle Rotterdam, le "Almost Ideal Demand System" (AIDS), l'approximation linéarisée du "Almost Ideal Demand System" (LAIDS), et la forme quadratique du "Almost Ideal Demand System" (QUAIDS) ont tous été considérés en termes de 1) les critères de la théorique en économie 2) la gamme des élasticités, et 3) la justesse de l'application du modèle.