Habit Formation in Food Consumption

Sven - Olov Daunfeldt, Jonas Nordström and Linda Thunström

in The Oxford Handbook of the Economics of Food Consumption and Policy

Published in print September 2011 | ISBN: 9780199569441
Published online November 2012 | | DOI:

Series: Oxford Handbooks in Economics

 Habit Formation in Food Consumption

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  • Economics
  • Microeconomics
  • Agricultural, Environmental, and Natural Resource Economics


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This article summarizes the empirical literature on habit formation in food consumption in order to analyze the hypothesis that food consumption is habit forming. It reviews the main econometric models used to study habits in food consumption and describes the most commonly used demand models and departs from the static version of the models. It describes how these models can be extended to dynamic versions incorporating habit formation. The focus is on the functional form of the models rather than estimation. The empirical studies reviewed in this article generally find habit formation in food consumption, implying that dynamics is an important factor in food demand analysis. Finally, it summarizes the results and discusses fruitful areas for future research.

Keywords: empirical literature; habit formation; food consumption; demand models; food demand analysis

Article.  9273 words. 

Subjects: Economics ; Microeconomics ; Agricultural, Environmental, and Natural Resource Economics

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