Testing Local Bias in Food Consumption: The Case of Fluid Milk
9 Pages Posted: 8 Dec 2018
Date Written: October 19, 2018
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: Suggested Citation