World food demand
JournalAmerican Journal of Agricultural Economics
AuthorsGrace Gao
PublishedJanuary 2012
PublisherOxford University Press
DOI10.1093/ajae/aar133
ISSN1467-8276 (Online) 0002-9092 (Print)
Number of Pages25-51
Volume94 (1)
Long-term projections of global food demand are heavily dependent on which functional form of the food demand equation is used. Given that real incomes can change substantially over the long-term, key elements are the dependence of the income elasticity on income, which ensures that the food budget share always lies within the [0, 1] range, and the role of income inequality. This article analyzes these issues, proposes a new functional form that deals with them, and presents estimates of income and price elasticities for food in 138 countries.
The Bankwest Curtin Economics Centre team acknowledges the Wadjuk Nyungar people as the traditional owners of the land on which the Centre is situated.