Source: UNIVERSITY OF TENNESSEE submitted to NRP
ECONOMIC ANALYSES OF CONSUMER FOOD SAFETY AND NUTRITION
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
HATCH
Reporting Frequency
Annual
Accession No.
0194474
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2002
Project End Date
Sep 30, 2007
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
UNIVERSITY OF TENNESSEE
2621 MORGAN CIR
KNOXVILLE,TN 37996-4540
Performing Department
Agricultural & Resource Economics
Non Technical Summary
Consumer awareness and attitudes are important factors in making informed food choices, and government programs are designed to improve nutrientional well being of the American consumers. This project investigates consumer awareness and perceptions, consumption of risky food, and the roles of government programs in improving nutrient intakes and food security.
Animal Health Component
70%
Research Effort Categories
Basic
30%
Applied
70%
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6076010301033%
6097310209034%
6106110301033%
Knowledge Area
607 - Consumer Economics; 609 - Economic Theory and Methods; 610 - Domestic Policy Analysis;

Subject Of Investigation
6110 - Economy of the United States and sectors thereof; 7310 - Experimental design and statistical methods; 6010 - Individuals;

Field Of Science
2090 - Statistics, econometrics, and biometrics; 3010 - Economics;
Goals / Objectives
On food safety, this proposed project aims at investigating consumer awareness and perceptions of food safety issues and consumption of risky food. Specific objectives are: 1) to determine the effects of economic and sociodemographic factors on consumer awareness and perceptions of current and emerging food safety issues [including consumer awareness and perceptions of micro-organisms (such as Salmonella, Campylobacter, Listeria, E coli, Vibrio Vulnificus, and Cyclospora), non-biological hazards (such as pesticide residues and antibiotic residues in foods), and consumer attitudes toward GMOs, food additives, and nutriceuticals]; 2) to determine the effects of economic and sociodemographic factors on consumption of risky foods (such as raw seafood and half-cooked hamburgers). On nutrition, the project will address the roles of government programs on food security and nutritional well being of consumers. Initial focus will be on the FSP, but the project will extend to cover other government programs such as the WIC and Federal school meal programs. Specific objectives are: 1) to identify the determinants of and interactions among participation in government programs (such as the FSP), food insecurity, and nutritional outcomes, allowing for potential endogeneity of one or more sets of variables (e.g., FSP participation and food insecurity) in the system; 2)to analyze the differentiated effects of cash income versus in-kind income such as food stamp benefits.
Project Methods
Food safety: To analyze consumer attitudes, statistical models need to be developed to address: (i) qualitative and/or censored dependent variables; (ii) endogenous binary/ordinal regressor(s); and (iii) equation systems with censored and/or qualitative dependent variables. Methodology will build upon the ordinal response model of McKelvey and Zavoina (1975) and its extension by Huang, Kan and Fu (1999) to accommodate multi-step sampling, and draw on the literature of multivariate systems with categorical and endogenous regressors (Kan and Yen, 2002; Pudney and Shields, 2000; Yen, 2002a). As to the analysis of risky foods, statistical models will include a multivariate system which accommodates censoring, sample selection and endogenous regressors. Statistical models will be developed by using and generalizing existing models (e.g., Shonkwiler and Yen, 1999; Yen and Lin, 2002; Yen, Lin and Smallwood, 2002; Yen, 2002b). Initial analysis of consumer awareness and perceptions will be based on existing data sources such as the FDA Food Safety Surveys. Additional data sources will be identified as additional state and national food-safety issues arise. As to the investigation of consumer food safety behavior, data will be compiled from the 1996 Hamburger and Egg Consumption Diary and Hamburger Preparation Quiz (ERS, October 2002; Ralston et al., 2002). Other data sources include USDA's CSFII (1994-1996, 1998). Nutrition: The proposed study entails three types of equations. One pertains to the decision of whether to participate in the program, a binary probit equation. The second equation focuses on perceived food insecurity, an ordinal probit equation. Both perceived food insecurity and food stamp participation are endogenous variables in that each appears on the left-hand side of one equation, and they are explanatory variables as they also appear on the right-hand side of the other equation. The third type of equation has either food expenditures or nutrient intakes as the dependent variables. The explanatory variables include perceived food insecurity and food stamp participation/benefits, both of which are endogenous. Because food use and expenditure data are unobserved for food stamp nonparticipants, these equations will be specified as a multivariate sample selection model. Data will come from the NFSPS, conducted between June 1996 and January 1997 by Mathematica Policy Research, Inc. (MPR) for the USDA-FNS (Ponza et al., 1999; Cohen et al., 1999; Ohls et al., 1999). The MPR reports extensive background analyses regarding food stamp participation, food insecurity and nutrient availability. Data files containing original and constructed variables are also provided along with the reports. Variables constructed for the MPR reports and contained in these data files will be utilized (e.g., Ponza et al., 1999, Table E.1; Cohen et al., 1999, Tables III.9, III.11, VI.3; Zambrowski and Ohls, 1999, Appendix A). Additional variables will be constructed from the NFSPS. Other data sources will be explored as the project proceeds (e.g., Survey of Income and Program Participation (SIPP), Survey or Program Dynamics (SPD)).

Progress 10/01/02 to 09/30/07

Outputs
1) Knowledge of dietary fats among U.S. consumers. The study examined awareness and knowledge among U.S. adults of six dietary fatty acids (saturated fat, trans fat, Omega-3 fatty acid, polyunsaturated fat, monounsaturated fat, and hydrogenated oil). Characteristics of adults with different levels of awareness and understanding were identified. Saturated fat was most recognized and understood, whereas awareness of other fatty acids was much lower than saturated fat. Findings are useful for deliberations of educational messages, nutrition programs, and food labeling. 2) Food programs and nutrition in small children. WIC is found to increase the intakes of most federal-targeted nutrients (vitamin A, vitamin B6, vitamin C, iron and calcium); effects of FSP are near nonexistent except zinc. 3) FSP and food insecurity (FI). Using data from the 1996-97 National Food Stamp Program Survey, participation in the FSP is found to ameliorate FI. Socio-demographic variables play important roles in FSP participation and FI. 4) Grain consumption in the U.S. Consumption was compared with the recommendations in the Government's 2005 Dietary Guidelines, using CSFII 1994-96 and 1998. The analysis confirmed a national preference for refined grains. The effects of consumers' social, economic, and demographic characteristics and dietary perceptions and practices were examined. Consumers who perceive grain consumption as important and read food labels during shopping tend to eat more whole grains than other people. 5) Smoking and obesity. Smoking may not have a strong long-term causal effect on body weight after controlling for the endogeneity. The negative relationship between smoking and BMI reported in the literature is potentially attributable to statistical biases. 6) Nutritional label use and obesity. Income, education, and other socio-demographic factors are related to nutritional label use and body mass index. Nutritional label use is not associated with lower body mass index or lower risk of obesity. 7) Consumer knowledge and meat consumption. Dietary knowledge is found to decrease consumption of beef and pork at home and away from home but does not affect poultry or fish in either occasion. Men eat more meat and fish than women, meat consumption declines with age, and regional and racial/ethnic differences are present. 8) Demand for cigarettes. A new method is proposed utilizing a rich dataset that identifies non-smokers, potential smokers, quitters and actual smokers in the sample. 9) Lifestyle and obesity. Lifestyle and social status affect body weight, as do sociodemographic factors such as education, employment and income. 10) Demand for vegetables. Elasticity estimates are larger than existing estimates. Even these larger elasticities are not large enough to bridge the dietary consumption gap without, and possibly even with, substantial price or food expenditure subsidies. Gross complements and substitutes are found among vegetables, while net substitution is obvious.

Impacts
Important issues on American's diet, health, and nutrition are addressed in this project. The roles of consumer health and dietary knowledge in dietary behavior are crucial information and tools for policy makers. Also important are the impacts of Federal food and nutritional programs on health and nutrition of small children and on household food insecurity. This information provides policy makers, the consumers and, more importantly, the tax payers whether the expensive Federal programs are working, and whether they have the potential to continue working. National issues are Tennessee issues and therefore are of interest to state policy makers. Findings are useful for deliberations of educational messages, nutrition programs, food labeling, and other policy measures, and have important implications for American's health and nutritional well being.

Publications

  • Lin, B., and Yen, S.T. (2007). Consumer Knowledge, Food Label Use, and Grain Consumption in the US. Applied Economics 39:1-12, iFirst.
  • Chen, Z., Yen, S.T., and Eastwood, D.B. (2007). Does Cigarette Smoking Have a Casual Effect on Weight Reduction? Journal of Family and Economic Issues 28(1):49-67.
  • Lin, B.H., and Yen, S.T. 2007. The U.S. Grain Consumption Landscape: Who Eats Grain, in What Form, Where, and How Much? ERR-50. U.S. Dept. of Agriculture, Econ. Res. Serv. November.


Progress 01/01/06 to 12/31/06

Outputs
Progress was made in 10 different research areas. 1) Consumer awareness of pesticide and antibiotic residues in food: Findings suggest that gender, age, amount of food handling information, education, income, number of adults in the household, marital status, children, ethnicity and race all play important roles in consumer awareness of the two food safety issues. Fewer socioeconomic factors influence the level of concern among those who were aware of the issues and the influences are less pronounced. Females were more concerned about food safety issues. 2) Food programs and nutrition in small children: WIC is found to increase the intake of most federal-targeted nutrients (Vitamins A, B6, C, iron, calcium); effects of FSP are near nonexistent except zinc. 3) Food stamps and food insecurity: FSP participation is found to increase the probability of food insecurity. These findings would prompt the re-thinking of the Federal Government's Food and Nutrition Assistance Programs. 4) Demand for grains: To narrow the gap between actual and Federal-recommended consumption of whole grains, considerable changes in consumer behavior are needed. Food label use and nutrition knowledge play important roles in the consumption of refined and whole-grain products, as are socio-demographic variables. The results can be used to help develop effective nutrition education messages and targeting strategies to promote consumption of whole grains in Americans' diets. 5) Smoking and obesity: Findings suggest smoking may not have a strong long-term causal effect on body weight after controlling for the endogeneity. The negative relationship between smoking and BMI reported in the literature is potentially attributable to statistical biases. 6) Nutritional label use and obesity: Results indicate that income, education, and other socio-demographic factors are related to nutritional label use and body mass index. Results do not suggest that nutritional label use is associated with lower body mass index and lower risk of obesity. 7) Consumer knowledge and meat consumption: Dietary knowledge is found to decrease beef and pork consumption at home and away from home but does not affect poultry or fish in either occasion. Men eat more meat and fish than women, meat consumption declines with age, and regional and racial/ethnic differences are present. 8) Demand for cigarettes: A new method is proposed utilizing a rich dataset identifying nonsmokers, potential smokers, quitters and actual smokers in the sample. 9) Lifestyle and obesity: Differentiated effects of lifestyle variables are investigated. Lifestyle and social status do affect BMI, and sociodemographic factors such as education, employment and income have strong impacts on the likelihood of being overweight and/or obesity. 10) Demand for vegetables: Our elasticity estimates are larger than existing estimates. Even these larger elasticities are not large enough to bridge the dietary consumption gap without, possibly even with, substantial price or food expenditure subsidies. While the elasticities suggest a mixture of gross complements and substitutes among the vegetables, net substitution is the obvious pattern.

Impacts
National issues are addressed at this stage of the project. However, national issues are Tennessee issues and of interest to state policy makers. Findings of consumer awareness and perceptions about pesticide residues, antibiotic residues and biological contamination in food are useful for federal and state agencies in targeting the population for food safety education. Findings on the effects of FSP and WIC on children's welfare, and the effects of FSP on food insecurity, are useful to policy makers at the Federal and state levels. Findings on the factors of vegetable, fruit and meat consumption are useful to both policy makers and marketers.

Publications

  • Yen, S.T. and Lin, B. 2006. A Sample Selection Approach to Censored Demand Systems. American Journal of Agricultural Economics 88(3):742-749.
  • Lin, B. and Yen, S.T. 2007. Consumer Knowledge, Food Label Use, and Grain Consumption in the US. Applied Economics 38.
  • Chen, Z., Eastwood, D.B. and Yen, S.T. 2007. A Decade's Story of Childhood Malnutrition Inequality in China: Where You Live Does Matter. China Economic Review 18(2):139-154.
  • Cho, S., Chen, Z., Yen, S.T. and English, B. 2007. Spatial Variation of Out-input Elasticities: Evidence from Chinese County-level Agricultural Production Data. Papers in Regional Science 86(1):139-157.
  • Chen, Z., Yen, S.T. and Eastwood, D.B. 2007. Does Cigarette Smoking Have a Casual Effect on Weight Reduction? Journal of Family and Economic Issues 28:49-67.
  • Cho, S., Chen, Z., Yen, S.T. and Eastwood, D.B. 2006. Estimating Effects of an Urban Growth Boundary on Land Development. Journal of Agricultural and Applied Economics 38(2):287-298. (Proceedings of the 2006 SAEA Invited Paper Sessions)
  • Cho, S., Chen, Z., Eastwood, D.B. and Yen, S.T. 2006. The Effects of Urban Sprawl on Body Mass Index: Where People Live Does Matter? Consumer Interests Annual 52:159-169.
  • Yen, S.T., Jensen, K.L. and Lin, C-T J. 2006. Awareness and Perceived Risk of Pesticide and Antibiotic Residues in Food: Socioeconomic Variations among U.S. Consumers. Food Protection Trends 26(9):654-661.
  • Chen, Z., and Yen, S.T. 2006. Better Technology, Better Plots, or Better Farmers? Identifying Changes in Productivity and Risk among Malagasy Rice Farms: A Comment. American Journal of Agricultural Economics 88(3):763-766.


Progress 01/01/05 to 12/31/05

Outputs
Several studies in the areas of food safety and security and nutrition were completed. The body density index was developed as an alternative to the body mass index as a measure of obesity. It was found to be a better predictor of obesity-related health problems than the body mass index. The relationship between participation in the food stamp program and food insecurity was investigated. This included analyses of food demand and the demand for food nutrients. Of particular interest was the effects of food stamp participation on body weight and obesity, smoking cessation and weight gain and beverage consumption. This work involved substantive extensions of the existing modeling framework by allowing for simultaneity. It necessitated the creation of maximum likelihood estimation techniques for systems of equations involving discrete and continuous dependent variables. A new methodology for measuring malnutrition was developed. It allows for separation of an index into components that can be related to socioeconomic factors. The methodology was applied to a series of cross-sectional data from provinces in China.

Impacts
The new measure of obesity was found to be a better predictor of health problems stemming from obesity than the more traditional body mass index. The new models of food stamp participation and food insecurity lead to inferences that respondents who received food stamps were more likely to have lower levels of food insecurity. Furthermore, enhanced and expanded food education programs could lead to better use of nutritional labeling of foods, and consequently, improved diets. Programs that focused on educating consumers about health risks and chemical residues should use multimedia campaigns to reach target audiences. Access to public transportation and income grown were found to be the best ways of reducing nutritional inequality in China. Educational levels, provincial characteristics, and the urban-rural gap.

Publications

  • Yen, S.T. 2005. A Multivariate Sample-Selection Model: Estimating Cigarette and Alcohol Demands with Zero Observations. American Journal of Agricultural Economics. 87(2):453-466.
  • Lin, J. C-T., Yen, S.T. and Jensen, K.L. 2005. Awareness of Foodborne Pathogens Among US Adults. Food Quality and Preference. 16(5):401-412.
  • Chen, Z. and Yen, S.T. 2005. On Bias Correction in the Multivariate Sample-Selection Model. Applied Economics. 37:2459-2468.
  • Chen, Z., Yen, S.T. and Eastwood, D.B. 2005. Effects of Food Stamp Participation on Body Weight and Obesity. American Journal of Agricultural Economics. 87(5):1167-1173.
  • Yen, S.T. 2005. Zero Observations and Gender Differences in Cigarette Consumption. Applied Economics. 37(16):1839-1849.


Progress 01/01/04 to 12/31/04

Outputs
Nutrition labels on food packages are intended to help consumers make informed dietary choices. Our findings suggest that encouraging search of food label information among consumers with unhealthy dietary habits would need innovative approaches and that nutrition education can be instrumental in encouraging this search by stimulating motivation and providing technical help. Our findings on consumer awareness of and concern about food safety suggest that a consumer education, outreach, or marketing program would reach more consumers by disseminating messages through multiple channels, and that less privileged (lower-income, younger, and less educated) individuals might be targeted for education programs to raise awareness of the potential health risks from pathogens. Accomplishments in consumer demand include development of innovative econometric methodology suitable for the use of microdata and applications of this methodology to consumer food demand and nutrition. Theoretical work includes development of a sample selection approach to censored demand systems.

Impacts
Federal policy makers are made aware that food safety and nutrition education programs can be improved through application of research findings implying that enhanced educational programs could lead to better use of nutritional labeling on foods and that programs regarding health risks from pathogens should use multiple communications channels to reach intended audiences.

Publications

  • Stewart, H. and Yen, S.T. 2004. Changing Household Characteristics and the Away-From-Home Food Market: A Censored Equation System Approach. Food Policy. 29 (2004).
  • Lin, J. C-T., Yen, S.T. and Jensen, K.L. 2004. Awareness of Foodborne Pathogens Among US Adults. Food Quality and Preference. 15 (2004).
  • Lin, B., Davis, C. and Yen, S.T. 2004. Consumption of Pork Products: Now and to the Year 2020. Journal of Agribusiness. Fall. 22:2:133−147.
  • Lin, J.C-T., Lee, J. and Yen, S.T. 2004. Do Dietary Intakes Affect Search for Nutrient Information on Food Labels? Social Science & Medicine. November. 59:9:1955-1967.
  • Yen, S.T., Fang, C. and Su, S. 2004. Household Food Demand in Urban China: A Censored System Approach. Journal of Comparative Economics. September. 32:564-585.
  • Yen, S.T., Lin, B., Smallwood, D.M. and Andrews, M. 2004. Demand for Nonalcoholic Beverages: The Case of Low-Income Households. Agribusiness: An International Journal. Summer. 20:3:309-321.
  • Lin, B. and Yen, S.T. 2004. U.S. Potato Consumption: Looking Ahead to 2020. Journal of Food Products Marketing. 10:2:49-65.
  • Yen, S.T., Shaw, W.D. and Eiswerth, M.E. 2004. Asthma Patients' Activities and Air Pollution: A Semiparametric Censored Regression -Analysis. Review of Economics of the Household. 2:78-88.


Progress 01/01/03 to 12/31/03

Outputs
The two components of the project are: (i) consumer food demand and nutrition and (ii) economics of food safety. Studies described below have been published in peer reviewed journals or are in the review/publication process. Accomplishments in consumer demand include development of econometric methodology suitable for the use of microdata and applications of this methodology to consumer food demand and nutrition. Empirical analyses carried out include (1) U.S. potato consumption with projection; (2) food consumption by food stamp recipients in the U.S.; and (3) health knowledge and egg consumption in the U.S.; (4) household food demand in urban China; (5) individual cigarette and alcohol demands in the U.S.; (6) household consumption of beverages - a sample selection approach; (7) demand for nonalcoholic beverages by low-income households; (8) changing household characteristics and the away-from-home food market; (9)demand for potato and grain products in Canada. Two other analyses were carried out and presented at the AAEA Annual Meeting and USDA-ERS: (10) food stamp, WIC and nutritional well being of small children; and (11) demand for fruits and vegetables: an analysis of homescan data. Research in food safety includes (1) consumer fat intake and search for fat information on food labels and (2) socioeconomic determinants of consumer food safety awareness and perceptions - pesticide and antibiotic residues in food; and (3) socioeconomic determinants of consumer food safety awareness related to bacteria.

Impacts
With a lot of the nation's resources devoted to the Food Stamp program and WIC, identification of the factors associated with the participation and nonparticipation in these programs and the impacts of these programs on children's nutritional well being are both timely and valuable. Nutrition labels on food packages are intended to help consumers make informed dietary choices, and our findings suggest that encouraging search of food label information among consumers with unhealthy dietary habits would need innovative approaches and that nutrition education can be instrumental in encouraging this search by stimulating motivation and providing technical help. Our findings on consumer awareness of and concern about food safety suggest that a consumer education, outreach, or marketing programs would reach more consumers by disseminating messages through multiple channels, and that less privileged (lower-income, younger and less educated) individuals might be targeted for education programs to raise awareness of the potential risks from pesticide and/or antibiotic residues.

Publications

  • Kan, K. and Yen, S.T. 2003. 'A Sample Selection Model with Endogenous Health Knowledge: Egg Consumption in the USA.' In K. Rickertsen and W.S. Chern (eds.), Health, Nutrition and Food Demand, chap. 6, pp. 91-103. CABI Publishing.
  • Yen, S.T., Lin, B. and Smallwood, D.M. 2003. 'Quasi and Simulated Likelihood Approaches to Censored Demand Systems: Food Consumption by Food Stamp Recipients in the United States.' Am. J. Ag. Econ. 85:458-78.