The Dynamics of Individuals' Fat Consumption

Posted: 13 Oct 2006

See all articles by Carlos Arnade

Carlos Arnade

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) - Market & Trade Economics Division

Munisamy Gopinath

Oregon State University - Department of Applied Economics

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Abstract

Consumers are increasingly aware of the link between their lifestyle choices and the risk of noncommunicable diseases. A dynamic approach incorporating this linkage in food demand is developed, where consumers maximize utility over time by choosing fat intake to control their cumulative fat level. The resulting dynamic indirect utility function and household data on meat, fish, and dairy consumption are used to estimate a censored demand system. Results show that consumers consciously adjust, but not instantaneously, their cumulative fat level. Highly educated households have a faster rate of adjustment of cumulative fat. When cumulative fat level increases, consumers shift to dairy or white meat from red meat products.

Suggested Citation

Arnade, Carlos and Gopinath, Munisamy, The Dynamics of Individuals' Fat Consumption. American Journal of Agricultural Economics, Vol. 88, No. 4, pp. 836-850, November 2006, Available at SSRN: https://ssrn.com/abstract=937041 or http://dx.doi.org/10.1111/j.1467-8276.2006.00901.x

Carlos Arnade (Contact Author)

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) - Market & Trade Economics Division ( email )

Washington, DC
United States

Munisamy Gopinath

Oregon State University - Department of Applied Economics ( email )

213 Ballard Extension Hall
Corvallis, OR 97331-4501
United States
541-737-1402 (Phone)
541-737-2563 (Fax)

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