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Changes in Consumption
   Patterns: ANOVA




      Source: Babu and Sanyal (2009)   1
Consumption Patterns: Importance
1. Total consumption accounts for more than two-thirds
   of national income in many countries, largest
   component having implications for the state of the
   economy.
2. Important to know changes in pattern of
   consumption since it reveals changes in economic
   welfare and living standards – a measure of economic
   performance. Finally,
3. Facilitates understanding the price responsiveness of
   consumption required for microeconomic policy
   issues, which include the measurement of
   distortions, optimal taxation and the treatment of
   externalities.
                 Changes in Consumption Patterns and Food Policy   2
Consumption Pattern & Food Security
1. Food security = f(Per capita availability of food , Changes
   in the composition of diet)
• Causes of changes in diet:
    Demographic and epidemiological transitions
    Demographic transition occurs due to a shift from a pattern of
     high fertility and mortality to one of low fertility and mortality,
    Epidemiological transition occurs due to a shift from a pattern
     of high prevalence of infectious disease associated with
     malnutrition, to one of high prevalence of chronic and
     degenerative diseases associated with urban lifestyles.
    Nutritional outcomes of such transitions: Changes in body
     composition and morbidity.



                     Changes in Consumption Patterns and Food Policy   3
Food Consumption Patterns: Determinants

• Food consumption:
  Quantity and quality of food intake by
   households/individuals
  Good proxy: calorie or nutrient intake
  Economic Devt & associated changes in CP
   In addition to income & expenditure, rural–
   urban migration, changes in demographic
   structures and improvements in
   education, transport and communications, and
   marketing infrastructure would affect CPs.

              Changes in Consumption Patterns and Food Policy   4
Percentage distribution of calorie
source by level of per capita GNP




         Changes in Consumption Patterns and Food Policy   5
ANOVA

• ANOVA: To test if differences exist between two or
  more population means.
• Populations pertain to interval data.
• Procedure: Analyze sample variance.
• Two variables: 1 Nominal , 1 Quantitative.
• Suppose categorical variable has only 2 values, then
  we use 2-sample t-test.
• Superiority of ANOVA: allows for 3 or more groups.


               Changes in Consumption Patterns and Food Policy   6
Descriptive Approach
• Graphical investigation:
   • Juxtaposed box plots
   • Multiple histograms

• How far the differences between groups are
  significant depends on
   • the difference in the means
   • the standard deviations of each group
   • the sample sizes

                Changes in Consumption Patterns and Food Policy   7
ANOVA

ANOVA: Test of hypotheses about more than two
  population mean parameters:
H0: The means of all the groups are equal.

Ha: Not all the means are equal

It doesn’t say how or which ones differ.
It can also be extended to multiple comparisons


                 Changes in Consumption Patterns and Food Policy   8
Assumptions
• Each population follows normal distribution
  Verify by drawing histograms and/or normal
   quantile plots, or use assumptions.
  Valid even with non-normal populations but not
   so with outliers.
• Standard deviations of each population are
  approximately equal
  Verify if the ratio of largest to smallest sample st.
   dev. is greater than 2:1.
                Changes in Consumption Patterns and Food Policy   9
Normality Verification
• Options for verification:
  • assumptions about population
  • histograms for each group
  • normal quantile plot for each group


• No robust method when it comes to small
  samples; hence, assume normality.


                Changes in Consumption Patterns and Food Policy   10
Table 5.1 Food group shares (%) of household calorie
                    intake for Malawi

Food group                                         Mean share                      Standard deviation

Maize                                                  63.66                             38.71

Other grains                                           9.76                              21.91

Roots/tubers                                           16.54                             27.01

Meat, fish & eggs                                      4.91                              16.43

Milk                                                   1.56                               7.73

Vegetables                                             1.98                               9.92

Pulses                                                 0.76                               5.24
Note: The mean share of calories does not sum to 100 per cent since the calories from other food are not
available.




                                 Changes in Consumption Patterns and Food Policy                           11
Descriptive Statistics
• Statistics: Mean and standard deviations of the food
  shares from the various groups.
• As a proportion of the total household calorie
  intake, the mean share of maize was almost 64 per
  cent - maize is the dominant staple food crop in
  Malawi.
• Roots and tubers (cassava, plantains and sweet
  potato) (16.5 per cent of total calorie intake).
• Last: grains such as rice and sorghum.

                Changes in Consumption Patterns and Food Policy   12
Table 5.2 Mean share of calories from various food
                  groups by expenditure brackets


 Per capita
                                        Roots/       Meat, fish
expenditure   Maize   Other grains                                      Milk   Vegetables   Pulses
                                        tubers       and eggs
 quartiles

1 (Lowest)    62.12      11.1           15.03            8.64           1.51      1.05      0.42

2 (Lower
              72.17      6.75           13.52            3.64           0.64      1.73      0.36
middle)
3 (Upper
              64.8       8.11           15.45            4.43           2.75      1.88      1.58
middle)

4 (Highest)   57.3       12.3           21.97            1.97           1.27      3.4       0.72

Total         63.67      9.77           16.55            4.91           1.57      1.98      0.76




                           Changes in Consumption Patterns and Food Policy                           13
Descriptive Statistics

• Maize: Major source of calories followed by roots
  and tubers, and other grains (such as rice, sorghum).
• Consumption preferences similar across quartiles.
• For the higher expenditure groups, the share of
  calories from maize, which is a staple diet, declines
  while the share of calories from animal
  products, vegetables and dairy products increases;
  because with increase in incomes, households
  substitute a better variety of food (in calorie and
  dietary content) compared to maize, which usually
  has lower dietary value.

                Changes in Consumption Patterns and Food Policy   14
Table 5.3 One-way ANOVA for share of calories across
                 expenditure quartiles

                                         F                         Sig.

Maize                                  3.565                       0.014

Other grains                           1.97                        0.117

Roots/tubers                           2.837                       0.037

Meat/fish/eggs                         5.09                        0.002

Milk                                   1.82                        0.142

Vegetables                             1.59                        0.191

Pulses                                 1.66                        0.174




                 Changes in Consumption Patterns and Food Policy
                                                                           15
Test of Hypothesis

• Reject the null hypothesis that the shares of
  calories from maize for the four expenditure groups
  are the same at the 5 per cent level.
• Reject the null hypothesis that calorie shares of
  roots and tubers and meat, fish and eggs for
  households in all the expenditure groups are the
  same at the 5 and 1 per cent levels respectively.
• The groups for which the null hypothesis cannot be
  rejected are other grains, milk, vegetables and
  pulses.

                Changes in Consumption Patterns and Food Policy
                                                                  16
Inference

• Malawi:
  Most of the households consume maize as part of a
   staple diet in order to derive calories.
  ANOVA: Calorie shares of maize for households in
   different expenditure groups are not the same.
  Poorer households derive most of the calories from
   cereals such as maize.
  As income of the households increases, there is
   greater substitution towards vegetables, milk and
   meat, fish and eggs. Thus, there is a tendency
   towards greater dietary diversity as income
   increases.

                 Changes in Consumption Patterns and Food Policy   17

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Topic 13 cons pattern

  • 1. Changes in Consumption Patterns: ANOVA Source: Babu and Sanyal (2009) 1
  • 2. Consumption Patterns: Importance 1. Total consumption accounts for more than two-thirds of national income in many countries, largest component having implications for the state of the economy. 2. Important to know changes in pattern of consumption since it reveals changes in economic welfare and living standards – a measure of economic performance. Finally, 3. Facilitates understanding the price responsiveness of consumption required for microeconomic policy issues, which include the measurement of distortions, optimal taxation and the treatment of externalities. Changes in Consumption Patterns and Food Policy 2
  • 3. Consumption Pattern & Food Security 1. Food security = f(Per capita availability of food , Changes in the composition of diet) • Causes of changes in diet:  Demographic and epidemiological transitions  Demographic transition occurs due to a shift from a pattern of high fertility and mortality to one of low fertility and mortality,  Epidemiological transition occurs due to a shift from a pattern of high prevalence of infectious disease associated with malnutrition, to one of high prevalence of chronic and degenerative diseases associated with urban lifestyles.  Nutritional outcomes of such transitions: Changes in body composition and morbidity. Changes in Consumption Patterns and Food Policy 3
  • 4. Food Consumption Patterns: Determinants • Food consumption: Quantity and quality of food intake by households/individuals Good proxy: calorie or nutrient intake Economic Devt & associated changes in CP  In addition to income & expenditure, rural– urban migration, changes in demographic structures and improvements in education, transport and communications, and marketing infrastructure would affect CPs. Changes in Consumption Patterns and Food Policy 4
  • 5. Percentage distribution of calorie source by level of per capita GNP Changes in Consumption Patterns and Food Policy 5
  • 6. ANOVA • ANOVA: To test if differences exist between two or more population means. • Populations pertain to interval data. • Procedure: Analyze sample variance. • Two variables: 1 Nominal , 1 Quantitative. • Suppose categorical variable has only 2 values, then we use 2-sample t-test. • Superiority of ANOVA: allows for 3 or more groups. Changes in Consumption Patterns and Food Policy 6
  • 7. Descriptive Approach • Graphical investigation: • Juxtaposed box plots • Multiple histograms • How far the differences between groups are significant depends on • the difference in the means • the standard deviations of each group • the sample sizes Changes in Consumption Patterns and Food Policy 7
  • 8. ANOVA ANOVA: Test of hypotheses about more than two population mean parameters: H0: The means of all the groups are equal. Ha: Not all the means are equal It doesn’t say how or which ones differ. It can also be extended to multiple comparisons Changes in Consumption Patterns and Food Policy 8
  • 9. Assumptions • Each population follows normal distribution Verify by drawing histograms and/or normal quantile plots, or use assumptions. Valid even with non-normal populations but not so with outliers. • Standard deviations of each population are approximately equal Verify if the ratio of largest to smallest sample st. dev. is greater than 2:1. Changes in Consumption Patterns and Food Policy 9
  • 10. Normality Verification • Options for verification: • assumptions about population • histograms for each group • normal quantile plot for each group • No robust method when it comes to small samples; hence, assume normality. Changes in Consumption Patterns and Food Policy 10
  • 11. Table 5.1 Food group shares (%) of household calorie intake for Malawi Food group Mean share Standard deviation Maize 63.66 38.71 Other grains 9.76 21.91 Roots/tubers 16.54 27.01 Meat, fish & eggs 4.91 16.43 Milk 1.56 7.73 Vegetables 1.98 9.92 Pulses 0.76 5.24 Note: The mean share of calories does not sum to 100 per cent since the calories from other food are not available. Changes in Consumption Patterns and Food Policy 11
  • 12. Descriptive Statistics • Statistics: Mean and standard deviations of the food shares from the various groups. • As a proportion of the total household calorie intake, the mean share of maize was almost 64 per cent - maize is the dominant staple food crop in Malawi. • Roots and tubers (cassava, plantains and sweet potato) (16.5 per cent of total calorie intake). • Last: grains such as rice and sorghum. Changes in Consumption Patterns and Food Policy 12
  • 13. Table 5.2 Mean share of calories from various food groups by expenditure brackets Per capita Roots/ Meat, fish expenditure Maize Other grains Milk Vegetables Pulses tubers and eggs quartiles 1 (Lowest) 62.12 11.1 15.03 8.64 1.51 1.05 0.42 2 (Lower 72.17 6.75 13.52 3.64 0.64 1.73 0.36 middle) 3 (Upper 64.8 8.11 15.45 4.43 2.75 1.88 1.58 middle) 4 (Highest) 57.3 12.3 21.97 1.97 1.27 3.4 0.72 Total 63.67 9.77 16.55 4.91 1.57 1.98 0.76 Changes in Consumption Patterns and Food Policy 13
  • 14. Descriptive Statistics • Maize: Major source of calories followed by roots and tubers, and other grains (such as rice, sorghum). • Consumption preferences similar across quartiles. • For the higher expenditure groups, the share of calories from maize, which is a staple diet, declines while the share of calories from animal products, vegetables and dairy products increases; because with increase in incomes, households substitute a better variety of food (in calorie and dietary content) compared to maize, which usually has lower dietary value. Changes in Consumption Patterns and Food Policy 14
  • 15. Table 5.3 One-way ANOVA for share of calories across expenditure quartiles F Sig. Maize 3.565 0.014 Other grains 1.97 0.117 Roots/tubers 2.837 0.037 Meat/fish/eggs 5.09 0.002 Milk 1.82 0.142 Vegetables 1.59 0.191 Pulses 1.66 0.174 Changes in Consumption Patterns and Food Policy 15
  • 16. Test of Hypothesis • Reject the null hypothesis that the shares of calories from maize for the four expenditure groups are the same at the 5 per cent level. • Reject the null hypothesis that calorie shares of roots and tubers and meat, fish and eggs for households in all the expenditure groups are the same at the 5 and 1 per cent levels respectively. • The groups for which the null hypothesis cannot be rejected are other grains, milk, vegetables and pulses. Changes in Consumption Patterns and Food Policy 16
  • 17. Inference • Malawi: Most of the households consume maize as part of a staple diet in order to derive calories. ANOVA: Calorie shares of maize for households in different expenditure groups are not the same. Poorer households derive most of the calories from cereals such as maize. As income of the households increases, there is greater substitution towards vegetables, milk and meat, fish and eggs. Thus, there is a tendency towards greater dietary diversity as income increases. Changes in Consumption Patterns and Food Policy 17