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Accounting for Changes in Tastes

James Chalfant () and Julian Alston

Journal of Political Economy, 1988, vol. 96, issue 2, 391-410

Abstract: Health concerns are thought by many to have shifted consumption away from red meats, though econometric evidence is mixed. Testing for structural change is difficult, especially when on e time series is used for both estimating demand equations and testin g their stability. Specification errors may suggest a shift where non e has occurred. Using nonparametric demand analysis, the authors find that meat consumption patterns in the United States and Australia ca n be explained using only relative prices and expenditures. Only impo sing particular functional forms can reverse the conclusion, suggesti ng that specification errors in econometric demand studies can accoun t for findings of taste changes. Copyright 1988 by University of Chicago Press.

Date: 1988
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