Spanish food demand analysis taking into account the impact of diet on health

Ana María Ángulo, Nadhem Mtimet, José María Gil

Abstract

This work analyses the Spanish demand for food taking into account the relationship between health and diet. Consequently, a utility function which depends on both food quantities and the level of health reached by consumers is maximized subject to two types of restrictions: a traditional budget constraint and a restriction associated with health production. The solution of the maximisation problem leads to a joint estimation of an equation system with two components, an equation referred to the diet quality and a food demand system. Results indicate that the introduction of the quality of diet in a demand system (in relation to the traditional model which only considers income and prices) modifies income elasticities, becoming greater in the case of healthier food groups. Moreover, an increase in diet quality implies an increase in the valuation of cereals and potatoes and a decrease of oil and meat groups.

Keywords

Food demand; Health; Diet quality; Spain

Subject classification

D12, D13, Q11.

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References

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