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date: 08 April 2020

Abstract and Keywords

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

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