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Calorie Elasticities with Income Dynamics: Evidence from the Literature

Zhou De and Xiaohua Yu

Applied Economic Perspectives and Policy, 2015, vol. 37, issue 4, 575-601

Abstract: This paper proposes a finite mixture model to identify the behavioral transition of calorie consumption with an assumption that nutrition consumption is a mixture of behaviors in two different stages: a poor stage and an affluent stage. Based on a meta-analysis of 387 calorie-income elasticities collected from 90 primary studies, it is found that the threshold income for calorie demand transition is $460 in 2012 prices. This implies that the transitional threshold for calorie consumption is $1.26/day, which is slightly lower than the World Bank's poverty line ($1.25/day in 2005 purchasing power parity prices) after deflation. This study provides a new empirical approach to evaluate the transition of calorie consumption and poverty line.

Date: 2015
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Applied Economic Perspectives and Policy is currently edited by Timothy Park, Tomislav Vukina and Ian Sheldon

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