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Price effect on the quality of Brazilian food diet and health: an analysis of nutrients' demand

Paula Carvalho Pereda, Denisard Alves

[setembro 2008]

Abstract: This work was carried out to analyze the quality of the Brazilian food diet and its response to changes in price. The diets’ quality and their consequences on health were measured by the consumer demand equations for nutrients, which were estimated by the Quadratic Almost Ideal Demand System model. The database used was collected from Household Expenditure Survey 2002/03 produced by the Brazilian Bureau of Statistics. The preliminary results of the prices effect suggested that the most price-sensible nutrients were: carbohydrates; calcium; iron; cholesterol; and vitamin C. These nutrients represent most of the basic diet food in Brazil, which means that public policies driven by price changes can be effective to improve the food diet in Brazil.