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Regional differences in India's food expenditure pattern: a complete demand systems approach

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  • J. V. Meenakshi

    (Department of Economics, Delhi School of Economics, Delhi University, Delhi, India)

  • Ranjan Ray

    (School of Economics, University of Tasmania, Hobart, Tasmania, Australia)

Abstract

This paper analyses India's food expenditure recognizing regional differences in preferences and prices. The results reveal large regional differences in expenditure pattern implying that nutrient enhancing programmes must recognize this diversity. Household composition is an important determinant of consumption, though the nature of demographic impact varies across regions. The popular AIDS yields biased elasticity estimates, especially for cereals, making its use inappropriate in developing countries. In policy applications, choice of a general demand system is important in evaluating the impact of price and income changes on basic consumption, and in designing optimal tax systems, but not necessarily in evaluating tax reforms. Copyright © 1999 John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 11 (1999)
Issue (Month): 1 ()
Pages: 47-74

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Handle: RePEc:wly:jintdv:v:11:y:1999:i:1:p:47-74

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  1. Ray, R., 1995. "Demographic Variables in Demand Systems: The Case for Generality," Papers, Tasmania - Department of Economics 1995-08, Tasmania - Department of Economics.
  2. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, Elsevier, vol. 22(1), pages 89-102, October.
  3. Ray, Ranjan, 1985. "A dynamic analysis of expenditure patterns in rural India," Journal of Development Economics, Elsevier, Elsevier, vol. 19(3), pages 283-297, December.
  4. Ray, Ranjan, 1980. "Analysis of a Time Series of Household Expenditure Surveys for India," The Review of Economics and Statistics, MIT Press, vol. 62(4), pages 595-602, November.
  5. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, Econometric Society, vol. 49(6), pages 1533-51, November.
  6. Jorgenson, Dale W & Slesnick, Daniel T, 1987. "Aggregate Consumer Behavior and Household Equivalence Scales," Journal of Business & Economic Statistics, American Statistical Association, American Statistical Association, vol. 5(2), pages 219-32, April.
  7. Chatterjee, Srikanta & Michelini, Claudio & Ray, Ranjan, 1994. "Expenditure Patterns and Aggregate Consumer Behaviour: Some Experiments with Australian and New Zealand Data," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 70(210), pages 278-91, September.
  8. Ahmad, Ehtisham & Stern, Nicholas, 1984. "The theory of reform and indian indirect taxes," Journal of Public Economics, Elsevier, Elsevier, vol. 25(3), pages 259-298, December.
  9. Muellbauer, John, 1977. "Testing the Barten Model of Household Composition Effects and the Cost of Children," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 87(347), pages 460-87, September.
  10. Nelson, Julie A, 1988. "Household Economies of Scale in Consumption: Theory and Evidence," Econometrica, Econometric Society, Econometric Society, vol. 56(6), pages 1301-14, November.
  11. Coondoo, Dipankor & Majumder, Amita, 1987. "A System of Demand Equations Based on Price Independent Generalized Linearity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 213-28, February.
  12. Dickens, Richard & Fry, Vanessa & Pashardes, Panos, 1993. "Non-linearities and Equivalence Scales," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 103(417), pages 359-68, March.
  13. Ray, Ranjan, 1986. "Sensitivity of `optimal' commodity tax rates to alternative demand functional forms : An econometric case study of India," Journal of Public Economics, Elsevier, Elsevier, vol. 31(2), pages 253-268, November.
  14. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, American Economic Association, vol. 70(3), pages 312-26, June.
  15. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, American Economic Association, vol. 83(3), pages 570-97, June.
  16. Murty, M N & Ray, Ranjan, 1989. " A Computational Procedure for Calculating Optimal Commodity Taxes with Illustrative Evidence from Indian Budget Data," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 91(4), pages 655-70.
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Cited by:
  1. Surabhi Mittal, 2010. "Application of the Quaids Model to the Food Sector in India," Journal of Quantitative Economics, The Indian Econometric Society, The Indian Econometric Society, vol. 8(1), pages 42-54, January.
  2. Olorunfemi Sola, 2013. "Demand for food in Ondo state, Nigeria: Using quadratic almost ideal demand system," E3 Journal of Business Management and Economics., E3 Journals, E3 Journals, vol. 4(1), pages 001-019.
  3. Puja Guha, 2004. "HABIT FORMATION IN CONSUMPTION: A Case Study of Rural India," Econometrics, EconWPA 0412012, EconWPA.
  4. Meenakshi, J. V. & Ray, Ranjan, 2002. "Impact of household size and family composition on poverty in rural India," Journal of Policy Modeling, Elsevier, Elsevier, vol. 24(6), pages 539-559, October.
  5. Surabhi Mittal, 2006. "Structural Shift in Demand for Food: Projections for 2020," Indian Council for Research on International Economic Relations, New Delhi Working Papers, Indian Council for Research on International Economic Relations, New Delhi, India 184, Indian Council for Research on International Economic Relations, New Delhi, India.
  6. Kumar, Praduman & Dey, Madan Mohan & Paraguas, Ferdinand J., 2005. "Demand for Fish by Species in India: Three-stage Budgeting Framework," Agricultural Economics Research Review, Agricultural Economics Research Association (India), Agricultural Economics Research Association (India), vol. 18(2).
  7. Abiodun Elijah Obayelu & V.O. Okoruwa & O.I.Y. Ajani, 2009. "Cross-sectional analysis of food demand in the North Central, Nigeria: The quadratic almost ideal demand system (QUAIDS) approach," China Agricultural Economic Review, Emerald Group Publishing, Emerald Group Publishing, vol. 1(2), pages 173-193, May.
  8. Bopape, Lesiba, 2006. "Heterogeneity of Household Food Expenditure Patterns in South Africa," 2006 Annual meeting, July 23-26, Long Beach, CA, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) 21300, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  9. Sharma, Vijay Paul & Jain, Dinesh, . "High-Value Agriculture in India: Past Trends and Future Prospects," IIMA Working Papers WP2011-07-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
  10. A. K. Seth & Ankur Bhatnagar, 2008. "Influence Of Demographic Variables On Indirect Tax Setting For Selected Indian States," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(02), pages 293-316.
  11. Surabhi Mittal, 2010. "Structural Shift in Demand for Food: Projections for 2020," Working Papers id:2788, eSocialSciences.
  12. Kumar, Praduman & Kumar, Anjani & Parappurathu, Shinoj & Raju, S.S., 2011. "Estimation of Demand Elasticity for Food Commodities in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), Agricultural Economics Research Association (India), vol. 24(1).
  13. Pachauri, Shonali, 2004. "An analysis of cross-sectional variations in total household energy requirements in India using micro survey data," Energy Policy, Elsevier, Elsevier, vol. 32(15), pages 1723-1735, October.
  14. Don J. DeVoretz & Florin P. Vadean, 2008. "Cultural Differences in the Remittance Behaviour of Households: Evidence from Canadian Micro Data," Studies in Economics, Department of Economics, University of Kent 0814, Department of Economics, University of Kent.

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