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Demand for Food in the Philippines: Responses to Price and Income Changes

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  • Arsenio M. Balisacan

    (School of Economics, University of the Philippines Diliman)

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    Abstract

    A member of the class of demand systems proposed by Blundell et al. (1993) is employed to improve the structure of food consumption responses in the Philippines. In general it is found that the income elasticity of demand for cereal is about 0.1 and that this elasticity does not drop rapidly with the level of income as is often suggested in the literature. This response is consistent with expectations concerning conversion ratios of cereal consumption to calorie-intake and gains in body weight. Moreover, while food price responses vary from one income group to another, or between rural and urban areas, the variation is not as large as has commonly been presumed.

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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/133/466
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    Bibliographic Info

    Article provided by University of the Philippines School of Economics and Philippine Economic Society in its journal Philippine Review of Economics.

    Volume (Year): 31 (1994)
    Issue (Month): 2 (December)
    Pages: 137-163

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    Handle: RePEc:phs:prejrn:v:31:y:1994:i:2:p:137-163

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    Postal: Diliman, Quezon City 1101
    Phone: 927-9686
    Web page: http://www.econ.upd.edu.ph/
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    Cited by:
    1. M.J. Mariano & J.A. Giesecke & N.H. Tran, 2014. "The Effects of Domestic Rice Market Interventions Outside Business-As-Usual Conditions For Imported Rice Prices," Centre of Policy Studies/IMPACT Centre Working Papers g-245, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Mariano, Marc Jim M. & Giesecke, James A., 2014. "The macroeconomic and food security implications of price interventions in the Philippine rice market," Economic Modelling, Elsevier, Elsevier, vol. 37(C), pages 350-361.
    3. Balisacan, Arsenio M. & Ravago, Majah-Leah V., 2003. "THE rice problem in the Philippines: trends, constraints, and policy imperatives," MPRA Paper 24865, University Library of Munich, Germany.

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