Do Prices and Attributes Explain International Differences in Food Purchases?

Abstract

Food purchases differ substantially across countries. We use detailed household level data from the US, France and the UK to (i) document these differences; (ii) esti- mate a demand system for food and nutrients, and (iii) simulate counterfactual choices if households faced prices and nutritional characteristics from other countries. We find that differences in prices and characteristics are important and can explain some difference (e.g., US-France difference in caloric intake), but generally cannot explain many of the compositional patterns by themselves. Instead, it seems an interaction between the economic environment and differences in preferences is needed to explain cross country differences.

Replaces

Pierre Dubois, Rachel Griffith, and Aviv Nevo, “Do Prices and Attributes Explain International Differences in Food Purchases?”, TSE Working Paper, n. 13-370, January 2013, revised May 2013.

Reference

Pierre Dubois, Rachel Griffith, and Aviv Nevo, “Do Prices and Attributes Explain International Differences in Food Purchases?”, American Economic Review, vol. 104, n. 3, March 2014, pp. 832–867.