Testing Local Bias in Food Consumption: The Case of Fluid Milk

9 Pages Posted: 8 Dec 2018

See all articles by Binod Khanal

Binod Khanal

University of Connecticut - Department of Agricultural and Resource Economics

Rigoberto A. Lopez

University of Connecticut - College of Agricultural, Health and Natural Resources

Azzeddine Azzam

University of Nebraska at Lincoln - College of Agricultural Sciences and Natural Resources - Department of Agricultural Economics

Date Written: October 19, 2018

Abstract

This article provides the first set of estimates of the degree of local bias in food consumption, by adapting the international trade notion of home bias, which describes the tendency of consumers to favour domestic over imported goods, to local bias, which describes the tendency of consumers to favour local over nonlocal food. Using state boundaries to define local and household data on milk purchases from 2007 until 2016 in the New England region, estimates from the Armington model confirm bias for locally produced milk.

Keywords: Local bias, home bias, local food, milk

JEL Classification: D12, L6, Q18

Suggested Citation

Khanal, Binod and Lopez, Rigoberto A. and Azzam, Azzeddine M., Testing Local Bias in Food Consumption: The Case of Fluid Milk (October 19, 2018). Available at SSRN: https://ssrn.com/abstract=3269848 or http://dx.doi.org/10.2139/ssrn.3269848

Binod Khanal (Contact Author)

University of Connecticut - Department of Agricultural and Resource Economics ( email )

1376 Storrs Road, Unit 4066
Storrs, CT 06269
United States

Rigoberto A. Lopez

University of Connecticut - College of Agricultural, Health and Natural Resources ( email )

1376 Storrs Road, Unit 4066
Storrs, CT 06269-4021
United States
(860) 486-1921 (Phone)

Azzeddine M. Azzam

University of Nebraska at Lincoln - College of Agricultural Sciences and Natural Resources - Department of Agricultural Economics ( email )

Lincoln, NE 68583
United States

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