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Household vegetable demand in the Philippines: Is there an urban-rural divide?

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  • Maria Erlinda M. Mutuc

    (Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX 79409-2132)

  • Suwen Pan

    (Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX 79409-2132)

  • Roderick M. Rejesus

    (Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, NC 27695-8109)

Abstract

A Nonlinear Quadratic Almost Ideal Demand System (NQAIDS) that accounts for censoring and endogeneity problems is used to assess the vegetable demand behavior of rural and urban households in the Philippines. Detailed household consumption data for a number of vegetable commodities are utilized in the analysis. The results show that most of the expenditure and own-price elasticities of the vegetables analyzed are near or larger than unitary in both rural and urban areas. For majority of the vegetable commodities examined, only the expenditure elasticity is significantly different between rural and urban households. On the other hand, own-price and cross-price elasticities of most vegetables do not significantly differ between rural and urban households. The disaggregate vegetable demand elasticities in this study, as well as the insights from the rural|urban comparisons, provide valuable information that can be utilized for the analysis and design of various food-related policies in the Philippines. [JEL Classification: R21; Q11] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 511-527, 2007.

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File URL: http://hdl.handle.net/10.1002/agr.20137
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

Volume (Year): 23 (2007)
Issue (Month): 4 ()
Pages: 511-527

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Handle: RePEc:wly:agribz:v:23:y:2007:i:4:p:511-527

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Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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  1. Quisumbing, Agnes R. & Valerio, Teresita E. & Red, Evangeline R. & Villavieja, Gracia M., 1988. "Flexible Functional Form Estimates of Philippine Demand Elasticities for Nutrition Policy Simulation," Working Papers WP 1988-13, Philippine Institute for Development Studies.
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