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Separability between own food production and consumption in Turkey

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  • Hasan Tekgüç

Abstract

Complete markets imply the separation of food production and consumption decisions such that they can be modeled to occur sequentially and can be studied independently. Separation is very often assumed implicitly in empirical studies of food demand. If there is such separation, then food sourced within the household should not have any influence upon the budget share of each food group. Using this insight, this paper first develops a procedure to test for the separation of household food production and consumption decisions. Furthermore, it incorporates the testing procedure into the Almost Ideal Demand Systems model and utilizes survey data from 2003 for Turkey for empirical testing. It concludes that the separation assumption is unwarranted for Turkey. Next, it investigates the extent of bias in elasticity estimates when the separation assumption is unwarranted. It concludes that ignoring the nonseparation of consumption and production decisions in rural areas leads to significant overestimation of food expenditure elasticity for dairy products and eggs and own-price elasticity for bread and cereals. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Hasan Tekgüç, 2012. "Separability between own food production and consumption in Turkey," Review of Economics of the Household, Springer, vol. 10(3), pages 423-439, September.
    • Handle: RePEc:kap:reveho:v:10:y:2012:i:3:p:423-439
    DOI: 10.1007/s11150-011-9126-5
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    2. Isabelle Chort & Rozenn Hotte & Karine Marazyan, 2021. "Income shocks, bride price and child marriage in Turkey," Working papers of Transitions Energétiques et Environnementales (TREE) hal-03258215, HAL.
    3. Zsombor Cseres-Gergely & Gyorgy Molnar & Tibor Szabo, 2017. "Expenditure responses, policy interventions and heterogeneous welfare effects in Hungary during the 2000s," CERS-IE WORKING PAPERS 1704, Institute of Economics, Centre for Economic and Regional Studies.
    4. Huang, Jiaqi & Antonides, Gerrit & Kuhlgatz, Christian H. & Nie, Fengying, 2018. "Mental accounting, production scale, and consumption of self-produced food: Empirical evidence from rural China," 2018 Annual Meeting, August 5-7, Washington, D.C. 273986, Agricultural and Applied Economics Association.
    5. Kuhlgatz, Christian H. & Huang, Jiaqi & Antonides, Gerrit & Nie, Fengying, 2018. "The Effect of Food Prices and Own-produced Food on Food Security of Chinese Rural Households," 2018 Annual Meeting, August 5-7, Washington, D.C. 273988, Agricultural and Applied Economics Association.
    6. Molnár, György & Cseres-Gergely, Zsombor & Szabó, Tibor, 2016. "Pénzt vagy életet?. Empirikus eredmények néhány gazdaságpolitikai beavatkozás heterogén jóléti hatásairól [For money or for life?. Empirical findings on the heterogenous welfare effects of some eco," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(9), pages 901-943.
    7. Bilgic, Abdulbaki & Yen, Steven T., 2013. "Household food demand in Turkey: A two-step demand system approach," Food Policy, Elsevier, vol. 43(C), pages 267-277.
    8. Abdulbaki Bilgic & Steven T. Yen, 2014. "Demand for meat and dairy products by Turkish households: a Bayesian censored system approach," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 117-127, March.

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    More about this item

    Keywords

    Agricultural household models; Own-produced food consumption; Turkey; Elasticity estimates; Dairy products; Q12; D12; D13;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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