Application of the Quaids Model to the Food Sector in India
AbstractHigher economic growth has led to diversification of the consumption bundle of households away from staple food. This has implications for the food policy as demand projections for different commodities impacts the farmers decision to diversify its production base which further has implications for the issue of food security. Thus it becomes important to project the demand, based on most realistic demand elasticities. Using the households consumer expenditure survey of the major National Sample Survey rounds, the paper estimates the price and expenditure elasticity’s of different food items/ groups in India. A two-stage Quadratic AIDS (QUAIDS) model is used to compute coefficients and calculate the demand elasticity’s. In this model assumption of linearity in the expenditure function is given away.
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Bibliographic InfoArticle provided by The Indian Econometric Society in its journal Journal of Quantitative Economics.
Volume (Year): 8 (2010)
Issue (Month): 1 (January)
Postal: Managing Editor, Journal of Quantitative Economics, Indira Gandhi Institute of Development Research (IGIDR), Gen. A.K. Vaidya Marg, Goregaon (E), Mumbai 400 065 , INDIA
Find related papers by JEL classification:
- Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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