Demand for Food Fats and Oils: The Role of Demographic Variables and Government Donations

Abstract

Abstract A systems model of U.S. food fats and oils demand is estimated using quarterly time‐series data for the period 1962–87. Demographic scaling is used to incorporate demographic variables and per capita government butter donations. In addition to price, income, and demographic demand elasticities, dietary fat intake elasticities are calculated for each of the demographic characteristics included in the study. All of the five own‐price elasticities are statistically significant, as are fifteen of the twenty cross‐price elasticities. Fourteen of the fifteen demographic elasticities are statistically significant.

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