Nutrient demand and the allocation of time: evidence from Guam

Abstract

This paper presents an econometric study of nutrient intake in Guam which explicitly accounts for household time allocation and household capital variables. The empirical framework is based on a household production model of nutrient consumption, food expenditure, and the allocation of time between labour, leisure and food preparation activities. The study finds evidence that: (1) capital and wage variables have significant impacts on households' nutrient demands; (2) income, wage and educational status have very different effects on the nutrient choices of low-calorie households than on the nutrient choices of high-calorie households; and (3) a family's participation in the food stamp programme leads to higher levels of food expenditure but this impact is attributable to the purchase of more costly ‘taste’ characteristics in food, rather than to the purchase of more nutritious foods.