The impact of gasoline price changes on food expenditures

Najmeh Kamyabi and Amir Fekrazad

Applied Economics Letters, 2025, vol. 32, issue 2, 174-178

Abstract: This paper examines the effect of gasoline price changes on consumer spending behaviour, specifically on food at home (FAH) and food away from home (FAFH) expenditures using monthly data from 1997–2022. We employ the Almost Ideal Demand System (AIDS) to estimate the cross-price elasticity of FAH and FAFH with respect to the price of gasoline. Our results show a negative relationship between gasoline price changes and FAH and FAFH expenditures. The results indicate that when the gasoline price doubles, FAH and FAFH expenditures drop by about 3% and 6%, respectively. This suggests that consumers adjust their food spending patterns in response to changes in gasoline prices, with a more substantial impact on FAFH expenditures.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2023.2259591 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:32:y:2025:i:2:p:174-178

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2023.2259591

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().