Demand for nonalcoholic beverages: the case of low-income households

Household beverage consumption is investigated using data from the National Food Stamp Program Survey conducted in the United States. A censored Translog demand system is estimated with the full-information maximum-likelihood procedure. All own-price effects are negative and significant, and whole m...

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Bibliographic Details
Published in:Agribusiness (New York, N.Y.) N.Y.), 2004-06, Vol.20 (3), p.309-321
Main Authors: Yen, S.T, Lin, B.H, Smallwood, D.M, Andrews, M
Format: Article
Language:English
Subjects:
Agricultural policy
Beverages
coffee (beverage)
Consumption
Elasticity of demand
Expenditures
Food
food consumption
Food stamps
Fruit juices
Households
juices
Low income groups
Milk
Nutrition
Prices
Soft drinks
Studies
Supplemental Nutrition Assistance Program
tea
translog demand system
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Summary:Household beverage consumption is investigated using data from the National Food Stamp Program Survey conducted in the United States. A censored Translog demand system is estimated with the full-information maximum-likelihood procedure. All own-price effects are negative and significant, and whole milk, reduced-fat milk, juice, coffee, and tea are found to be net substitutes for soft drink. Thus, prices provide a partial answer to the declining consumption of milk and rising consumption of soft drink. Nutrition information and dietary beliefs also play important roles, highlighting the importance of an effective nutrition education program directed toward the low-income households.
ISSN:0742-4477
1520-6297
DOI:10.1002/agr.20015