Cholesterol Information and Shell Egg Consumption

Abstract

Abstract U.S. per capita shell egg consumption has declined steadily since 1955 despite a falling real price. This paper investigates how information about cholesterol, as measured by a newly constructed index based on medical journal articles, has affected U.S. demand for shell eggs. The results of a fixed coefficient model indicate that information on the links between cholesterol and heart disease had decreased per capita shell egg consumption by 16% to 25% by the first quarter of 1987. A simple changing coefficient model indicates that cholesterol information has changed shell eggs' own price and income elasticities, so that the 1955–87 falling egg price and rising income increased egg consumption less than they otherwise would have.

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