Investigation of asymmetric impulse responses between average consumption propensity and average food consumption propensity of household in Korea

https://doi.org/10.17221/287/2018-AGRICECONCitation:Ahn B. (2019): Investigation of asymmetric impulse responses between average consumption propensity and average food consumption propensity of household in Korea. Agric. Econ. – Czech, 65: 415-424.
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Average consumption propensity (ACP) and average food consumption propensity (AFCP) are important indices for implementing macroeconomic and food policies. The present paper investigates the existence of asymmetric responses of ACP and AFCP to positive and negative shocks of each series in Korea. According to the estimation results of the Structural Vector Autoregression (SVAR) model, ACP and AFCP are analysed to have asymmetric responses to negative and positive shocks, regardless of whether the shock is imposed on the own or on the other series. The derived absolute values of the responses indicate that ACP is more influenced by AFCP, which implies that a shock on AFCP is more permanent than one on ACP. The responses of ACP and AFCP appear to be lower during the period after 1998 when the Asian financial crisis occurred. This implies that not only food consumption, but also overall consumption of households became stabilised after the Asian financial crisis.

References:
Amisano G., Giannini C. (1997): Topics in Structural VAR Econometrics. 2nd Ed., Springer, New York.
 
Bansback B. (1995): Towards a broader understanding of meat demand. Journal of Agricultural Economics, 46: 287–308. https://doi.org/10.1111/j.1477-9552.1995.tb00777.x
 
Becker G. (1976): The Economic Approach to Human Behavior. The University of Chicago Press, Chicago.
 
Blaylock J., Smallwood D. (1986): U.S. Demand for Food: Household Expenditures, Demographics, and Projections. U.S. Department of Agriculture, Economic Research Service, TB–1713.
 
Blisard N. (2001): Income and Food Expenditures Decomposed by Cohort, Age, and Time Effects. U.S. Department of Agriculture, Economic Research Service, TB–1896.
 
Blisard N., Blaylock J. (1993): U.S. Demand for Food: Household Expenditures, Demographics, and Projections for 1990–2010. U.S. Department of Agriculture, Economic Research Service, TB–1818.
 
Deaton A., Muellbauer J. (1980): An almost ideal demand system. American Economic Review, 70: 312–26.
 
Dickinson D., Hobbs J., Bailey D. (2003): A comparison of US and Canadian consumers’ willingness to pay for red-meat traceability. In: Proceedings The American Agricultural Economics Association Annual Meeting, Montreal, Canada, July 27–30, 2003.
 
Gheblawi M., Sherif S. (2007): Determination of factors affecting expenditures on three major food groups in Al-Ain, The United Arab Emirates (UAE). Emirates Journal of Food and Agriculture, 19: 15–23. https://doi.org/10.9755/ejfa.v12i1.5172
 
Kim J.W., Rho Y.J. (2017): A Study on the consumption drop and its reasons. Journal of the Korean Official Statistics, 22: 41–67.
 
Lee B.S. (2010): Stock returns and inflation revisited: An evaluation of the inflation illusion hypothesis. Journal of Banking and Finance, 34: 1257–1273. https://doi.org/10.1016/j.jbankfin.2009.11.023
 
Lee K.I., Han H.S., Son E.Y. (2007): Analysis of Food Consumption Trends of Korean. Research Report R560. Korea Rural Economic Institute, South Korea.
 
Lee K.I., Kim S.H., Heo S.Y. (2016): In-Depth Analysis of Food Consumption in Korea. Research Report R781. Korea Rural Economic Institute, South Korea.
 
McCracken V., Brandt J. (1987): Household consumption of food away from home: total expenditure and by type of food facility. American Journal of Agricultural Economics, 69: 274–284. https://doi.org/10.2307/1242277
 
Smith L., Dupriez O., Troubat N. (2014): Assessment of the reliability and relevance of the food data collected in national household consumption and expenditure surveys. IHSN Working Paper No. 008. International Household Survey Network.
 
Statistics Korea (2018): Survey on Household Expenditure. Statistics Korea. https://doi.org/10.1787/int_trade-v2018-1-21-en
 
Stewart H., Blisard N., Byuyan S., Nayga R. (2004): The Demand for Food from Home: Full-Service or Fast Food. Agricultural Economic Report No. 829. U.S. Department of Agriculture, Economic Research Service.
 
Zezza A., Carletto C., Fiedler J.L., Gennari P., Jolliffe D. (2017): Food counts. Measuring food consumption and expenditures in household consumption and expenditure surveys (HCES). Introduction to the special issue. Food Policy, 72: 1–6. https://doi.org/10.1016/j.foodpol.2017.08.007
 
Amisano G., Giannini C. (1997): Topics in Structural VAR Econometrics. 2nd Ed., Springer, New York.
 
Bansback B. (1995): Towards a broader understanding of meat demand. Journal of Agricultural Economics, 46: 287–308. https://doi.org/10.1111/j.1477-9552.1995.tb00777.x
 
Becker G. (1976): The Economic Approach to Human Behavior. The University of Chicago Press, Chicago.
 
Blaylock J., Smallwood D. (1986): U.S. Demand for Food: Household Expenditures, Demographics, and Projections. U.S. Department of Agriculture, Economic Research Service, TB–1713.
 
Blisard N. (2001): Income and Food Expenditures Decomposed by Cohort, Age, and Time Effects. U.S. Department of Agriculture, Economic Research Service, TB–1896.
 
Blisard N., Blaylock J. (1993): U.S. Demand for Food: Household Expenditures, Demographics, and Projections for 1990–2010. U.S. Department of Agriculture, Economic Research Service, TB–1818.
 
Deaton A., Muellbauer J. (1980): An almost ideal demand system. American Economic Review, 70: 312–26.
 
Dickinson D., Hobbs J., Bailey D. (2003): A comparison of US and Canadian consumers’ willingness to pay for red-meat traceability. In: Proceedings The American Agricultural Economics Association Annual Meeting, Montreal, Canada, July 27–30, 2003.
 
Gheblawi M., Sherif S. (2007): Determination of factors affecting expenditures on three major food groups in Al-Ain, The United Arab Emirates (UAE). Emirates Journal of Food and Agriculture, 19: 15–23. https://doi.org/10.9755/ejfa.v12i1.5172
 
Kim J.W., Rho Y.J. (2017): A Study on the consumption drop and its reasons. Journal of the Korean Official Statistics, 22: 41–67.
 
Lee B.S. (2010): Stock returns and inflation revisited: An evaluation of the inflation illusion hypothesis. Journal of Banking and Finance, 34: 1257–1273. https://doi.org/10.1016/j.jbankfin.2009.11.023
 
Lee K.I., Han H.S., Son E.Y. (2007): Analysis of Food Consumption Trends of Korean. Research Report R560. Korea Rural Economic Institute, South Korea.
 
Lee K.I., Kim S.H., Heo S.Y. (2016): In-Depth Analysis of Food Consumption in Korea. Research Report R781. Korea Rural Economic Institute, South Korea.
 
McCracken V., Brandt J. (1987): Household consumption of food away from home: total expenditure and by type of food facility. American Journal of Agricultural Economics, 69: 274–284. https://doi.org/10.2307/1242277
 
Smith L., Dupriez O., Troubat N. (2014): Assessment of the reliability and relevance of the food data collected in national household consumption and expenditure surveys. IHSN Working Paper No. 008. International Household Survey Network.
 
Statistics Korea (2018): Survey on Household Expenditure. Statistics Korea. https://doi.org/10.1787/int_trade-v2018-1-21-en
 
Stewart H., Blisard N., Byuyan S., Nayga R. (2004): The Demand for Food from Home: Full-Service or Fast Food. Agricultural Economic Report No. 829. U.S. Department of Agriculture, Economic Research Service.
 
Zezza A., Carletto C., Fiedler J.L., Gennari P., Jolliffe D. (2017): Food counts. Measuring food consumption and expenditures in household consumption and expenditure surveys (HCES). Introduction to the special issue. Food Policy, 72: 1–6. https://doi.org/10.1016/j.foodpol.2017.08.007
 
Amisano G., Giannini C. (1997): Topics in Structural VAR Econometrics. 2nd Ed., Springer, New York.
 
Bansback B. (1995): Towards a broader understanding of meat demand. Journal of Agricultural Economics, 46: 287–308. https://doi.org/10.1111/j.1477-9552.1995.tb00777.x
 
Becker G. (1976): The Economic Approach to Human Behavior. The University of Chicago Press, Chicago.
 
Blaylock J., Smallwood D. (1986): U.S. Demand for Food: Household Expenditures, Demographics, and Projections. U.S. Department of Agriculture, Economic Research Service, TB–1713.
 
Blisard N. (2001): Income and Food Expenditures Decomposed by Cohort, Age, and Time Effects. U.S. Department of Agriculture, Economic Research Service, TB–1896.
 
Blisard N., Blaylock J. (1993): U.S. Demand for Food: Household Expenditures, Demographics, and Projections for 1990–2010. U.S. Department of Agriculture, Economic Research Service, TB–1818.
 
Deaton A., Muellbauer J. (1980): An almost ideal demand system. American Economic Review, 70: 312–26.
 
Dickinson D., Hobbs J., Bailey D. (2003): A comparison of US and Canadian consumers’ willingness to pay for red-meat traceability. In: Proceedings The American Agricultural Economics Association Annual Meeting, Montreal, Canada, July 27–30, 2003.
 
Gheblawi M., Sherif S. (2007): Determination of factors affecting expenditures on three major food groups in Al-Ain, The United Arab Emirates (UAE). Emirates Journal of Food and Agriculture, 19: 15–23. https://doi.org/10.9755/ejfa.v12i1.5172
 
Kim J.W., Rho Y.J. (2017): A Study on the consumption drop and its reasons. Journal of the Korean Official Statistics, 22: 41–67.
 
Lee B.S. (2010): Stock returns and inflation revisited: An evaluation of the inflation illusion hypothesis. Journal of Banking and Finance, 34: 1257–1273. https://doi.org/10.1016/j.jbankfin.2009.11.023
 
Lee K.I., Han H.S., Son E.Y. (2007): Analysis of Food Consumption Trends of Korean. Research Report R560. Korea Rural Economic Institute, South Korea.
 
Lee K.I., Kim S.H., Heo S.Y. (2016): In-Depth Analysis of Food Consumption in Korea. Research Report R781. Korea Rural Economic Institute, South Korea.
 
McCracken V., Brandt J. (1987): Household consumption of food away from home: total expenditure and by type of food facility. American Journal of Agricultural Economics, 69: 274–284. https://doi.org/10.2307/1242277
 
Smith L., Dupriez O., Troubat N. (2014): Assessment of the reliability and relevance of the food data collected in national household consumption and expenditure surveys. IHSN Working Paper No. 008. International Household Survey Network.
 
Statistics Korea (2018): Survey on Household Expenditure. Statistics Korea. https://doi.org/10.1787/int_trade-v2018-1-21-en
 
Stewart H., Blisard N., Byuyan S., Nayga R. (2004): The Demand for Food from Home: Full-Service or Fast Food. Agricultural Economic Report No. 829. U.S. Department of Agriculture, Economic Research Service.
 
Zezza A., Carletto C., Fiedler J.L., Gennari P., Jolliffe D. (2017): Food counts. Measuring food consumption and expenditures in household consumption and expenditure surveys (HCES). Introduction to the special issue. Food Policy, 72: 1–6. https://doi.org/10.1016/j.foodpol.2017.08.007
 
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