World food demand

JournalAmerican Journal of Agricultural Economics
AuthorsGrace Gao
PublishedJanuary 2012
PublisherOxford University Press
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.