This thesis focuses on the relationship between food expenditures and the economy. In analogous fashion to Maxwell 2013 which calculated energy expenditures as a percentage of national and global gross domestic product (GDP), this thesis examined three available food expenditure datasets to study the relationship between food expenditures as a percentage of GDP and economic growth. The analysis calculated two metrics, Primary Consumption Expenditures and Final Consumption Expenditures which were used to compare the available datasets and create a more robust hybrid dataset containing data for 178 countries with an average time span of 40 years that was used to study the relationship between global economic growth and food expenditures. Historical evidence does not suggest that food has imposed a limit on economic growth; however, recent trends over the past decade associated with biofuel production suggest the global economy has entered a new era with rapidly rising food prices and expenditures. As food resources continue to be used as industrial energy inputs, it is critical to include food expenditures in further analysis of potential impacts energy expenditures may have on economic growth. / text

Objective: To evaluate changes in shopping behaviors among low-income families over a one-month period of time in Utah County, Utah. Design: Two researchers conducted thirteen 90-minute focus groups. Setting: Two community organizations serving low-income populations and a university campus. Participants: Seventy-two low-income adults who were the primary household food shoppers and who had at least one child less than 18 years in their household. Main Outcome Measures: Shopping behavior changes during one month period of time. Analysis: Focus groups were recorded and transcribed, and then coded independently by two researchers with any differences reconciled. Paired t-tests were used to test differences of food expenditures by food group between the beginning and end-of-the-month shopping behaviors. Results: Shopping habits among low-income families changed throughout the month and were impacted by use of food assistance programs, food prices, and shopping logistics. Participants reported purchasing more varied foods at the beginning of the month versus more starch-based and canned foods at the end-of-the-month. To overcome economic barriers, participants used numerous strategies including weekly or monthly menu planning, price matching, and bulk buying. Conclusions and Implications: Low-income families make strategic decisions based on economic circumstances and other factors, including participation in food assistance programs, or the timing of the month, in order to stretch food expenditures. Our results suggest limited economics throughout the month may hinder families' ability to consume a varied, nutrient-rich diet, which may impact future health status.

In my dissertation, I investigate the relationship between household consumption expenditures and transitory income shocks. In the first two essays, I pay particular attention to household expenditures in the aftermath of natural disasters, which are becoming more frequent and costly in the U.S. since 1980. Additionally, I study specialty farm producers' risk attitudes after an income shock due to natural disasters. Although the permanent income hypothesis predicts that households smooth consumption over their lifetimes, credit-constrained households may find consumption smoothing impractical. This dissertation brings forth evidence regarding heterogeneity in the effect of income shocks on household expenditures. First, I find that floods and hurricanes affect food-at-home (FAH) spending in different ways. The average 15-day decrease in FAH spending is about $2 in the 90 days after a flood and about $7 in the 30 days after a hurricane. In other words, floods have a prolonged effect and hurricanes have an immediate effect. I find that floods and hurricanes remain a threat to the FAH expenditures of vulnerable households, for instance, low-income households and households in coastal states. Second, Indiana specialty farm households reduce their monthly expenses of food and miscellaneous categories by about $119 and $280, respectively, after an income loss of 20%-32%. I also find that Indiana specialty producers are less willing to take financial risk after an income loss experience, i.e., they have a decreasing absolute risk aversion. Finally, in the third essay, I show that Australian households exhibit loss aversion in consumption expenditures which also means that they behave asymmetrically in their consumption response to income shocks. However, it is only working-age younger households that show asymmetric consumption behavior as opposed to the symmetric behavior of retirement-age households. The main message of these various findings is clear: after an income shock, the magnitude of change in consumption expenditures and the saliency of certain expenditure categories for adjustment are context- and population-dependent. Hence, income support policies and post-disaster relief programs may benefit from a better understanding of the consumption behavior of beneficiary population, to achieve maximum impact through better targeting.