The Dynamics of Food, Alcohol and Cigarette Consumption in Russia During Transition

46 Pages Posted: 13 Jul 2013

See all articles by Thomas Herzfeld

Thomas Herzfeld

IAMO; Martin Luther University of Halle-Wittenberg

Sonya Kostova Huffman

Iowa State University - Department of Economics

Marian Rizov

University of Lincoln (UK) - Lincoln International Business School; Lincoln Economics and Finance (LEAF) Research Group

Date Written: February 20, 2013

Abstract

This paper presents evidence on the impact of individual as well as regional characteristics on the dynamics of fat, protein, alcohol and cigarette consumption, and on the diversity of the diet in Russia between 1994 and 2005. All those aspects of nutritional behavior are important inputs to the production of health. A dynamic panel data model is used to estimate demand functions for fat, protein, alcohol, cigarette and diversity of the diet. The results suggest the existence of strong habits in drinking and smoking, and the absence of habits in fat and protein consumption. We also found evidence of habit formation for food diversity. Comparing nutritional behavior of younger and older consumers we find significant differences for demand for fat and cigarettes. Older consumers seem to be more persistent in their drinking and smoking behavior. Similarly, men show higher habit persistence for alcohol and cigarettes consumption. The results also suggest that among individual determinants, especially education, income and employment have statistically significant impacts on consumption behavior. Regarding the macroeconomic variables, economic growth is negatively related to protein consumption, while regional unemployment rate is negatively affecting demand for protein and food diversity. Finally, Russian consumers react to price changes of alcohol, cigarettes, fat and protein as suggested by theory. Consumer demand for food diversity responds negatively to price changes of alcohol and cigarettes but positively to price of fat.

Keywords: food consumption, diet diversity, smoking, alcohol, health, economic transition, Russia

JEL Classification: D12, D19, I12

Suggested Citation

Herzfeld, Thomas and Kostova Huffman, Sonya and Rizov, Marian, The Dynamics of Food, Alcohol and Cigarette Consumption in Russia During Transition (February 20, 2013). Economics & Human Biology, 2013, Available at SSRN: https://ssrn.com/abstract=2292881

Thomas Herzfeld (Contact Author)

IAMO ( email )

Theodor-Lieser-Str. 2
Halle/Saale, 06120
Germany

Martin Luther University of Halle-Wittenberg ( email )

Universitätsplatz 10
Halle (Saale), Saxony-Anhalt 06108
Germany

Sonya Kostova Huffman

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States

Marian Rizov

University of Lincoln (UK) - Lincoln International Business School ( email )

Brayford Pool
Lincoln, LN6 7TS
United Kingdom

Lincoln Economics and Finance (LEAF) Research Group ( email )

United Kingdom

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