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Abstract

This paper looks at a sample of middle income countries to determine 1) what different measures researchers can use to gauge demand for variety, and 2) whether taste for variety increases with income according to these measures. The goal of the research is to learn the stylized facts regarding the desire for variety as reflected by diet and by trading behavior. The next section briefly discusses empirical and theoretical work on the demand for variety, whether that demand increases with income, and the demand for variety in traded goods. The following section discusses measures of variety and tests of the relationship of variety to income. The following sections discuss the results of applying those measures to countries and testing their relationship to income.

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