| In a 2003 report, International Evidence on Food Consumption Patterns, ERS economists estimated income and price elasticities of demand for broad consumption categories and food categories across 114 countries using 1996 International Comparison Program (ICP) data. This report updates that analysis with an estimated two-stage demand system across 144 countries using 2005 ICP data. Advances in ICP data collection since 1996 led to better results and more accurate income and price elasticity estimates. Low-income countries spend a greater portion of their budget on necessities, such as food, while richer countries spend a greater proportion of their income on luxuries, such as recreation. Low-value staples, such as cereals, account for a larger share of the... |
