Researchers believe that rice in developed countries such as Japan became an inferior good a few decades ago. This study employs the flexible complete demand system for the recent cross-sectional data in Japan. Our results clearly show that rice in Japan is a normal good contrary to the preceding studies. The objective of this research is to analyze the food consumption patterns and to conduct econometric analysis of food demand structure. We use the monthly basis cross-sectional household data, Annual Report on the Family Income and Expenditure Survey (FIES) in 1997. Food items are non-glutinous rice, bread, noodle, fresh fish, and shellfish, fresh meat, milk, eggs, fresh vegetables, fresh fruits, fats and oil, and food away from home. We apply... |