A DEMAND SYSTEMS-ANALYSIS OF FOOD COMMODITIES BY US HOUSEHOLDS SEGMENTED BY INCOME

Using the 1987-88 Nationwide Food Consumption Survey, twelve food comm odity groups were analyzed according to household poverty status. Para meter estimates were used to obtain subsistence expenditures, own-pric e elasticities, expenditure elasticities, and income elasticities. Own -price elasticities were similar between the income groups for most co mmodities. However, income elasticities were consistently higher for t he lower-income group. The use of average estimates of price and incom e elasticities for the population as a whole for the projection of ind ividual commodity demands is not likely to be successful if notable ch anges are evident in income distribution.