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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, Ranjan, 1985. "A dynamic analysis of expenditure patterns in rural India," Journal of Development Economics, Elsevier, vol. 19(3), pages 283-297, December.
  2. 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.
  3. Ahmad, Ehtisham & Stern, Nicholas, 1984. "The theory of reform and indian indirect taxes," Journal of Public Economics, Elsevier, vol. 25(3), pages 259-298, December.
  4. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-97, June.
  5. 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, vol. 28(1), pages 213-28, February.
  6. Ray, R., 1995. "Demographic Variables in Demand Systems: The Case for Generality," Papers 1995-08, Tasmania - Department of Economics.
  7. Muellbauer, John, 1977. "Testing the Barten Model of Household Composition Effects and the Cost of Children," Economic Journal, Royal Economic Society, vol. 87(347), pages 460-87, September.
  8. 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, vol. 70(210), pages 278-91, September.
  9. Nelson, Julie A, 1988. "Household Economies of Scale in Consumption: Theory and Evidence," Econometrica, Econometric Society, vol. 56(6), pages 1301-14, November.
  10. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
  11. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-51, November.
  12. 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, vol. 31(2), pages 253-268, November.
  13. Dickens, Richard & Fry, Vanessa & Pashardes, Panos, 1993. "Non-linearities and Equivalence Scales," Economic Journal, Royal Economic Society, vol. 103(417), pages 359-68, March.
  14. Jorgenson, Dale W & Slesnick, Daniel T, 1987. "Aggregate Consumer Behavior and Household Equivalence Scales," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(2), pages 219-32, April.
  15. 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, vol. 91(4), pages 655-70.
  16. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
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Cited by:
  1. 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), vol. 18(2).
  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, vol. 4(1), pages 001-019.
  3. Surabhi Mittal, 2006. "Structural Shift in Demand for Food: Projections for 2020," Indian Council for Research on International Economic Relations, New Delhi Working Papers 184, Indian Council for Research on International Economic Relations, New Delhi, India.
  4. J.V. Meenakshi & Ranjan Ray, 2000. "Impact of Household Size and Family Composition on Poverty in Rural India," ASARC Working Papers 2000-02, The Australian National University, Australia South Asia Research Centre.
  5. Surabhi Mittal, 2010. "Structural Shift in Demand for Food: Projections for 2020," Working Papers id:2788, eSocialSciences.
  6. 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.
  7. Puja Guha, 2004. "HABIT FORMATION IN CONSUMPTION: A Case Study of Rural India," Econometrics 0412012, EconWPA.
  8. Surabhi Mittal, 2010. "Application of the Quaids Model to the Food Sector in India," Journal of Quantitative Economics, The Indian Econometric Society, vol. 8(1), pages 42-54, January.
  9. Don J. DeVoretz & Florin P. Vadean, 2008. "Cultural Differences in the Remittance Behaviour of Households: Evidence from Canadian Micro Data," Studies in Economics 0814, Department of Economics, University of Kent.
  10. 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, vol. 1(2), pages 173-193, May.
  11. 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.
  12. Bopape, Lesiba, 2006. "Heterogeneity of Household Food Expenditure Patterns in South Africa," 2006 Annual meeting, July 23-26, Long Beach, CA 21300, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  13. Pachauri, Shonali, 2004. "An analysis of cross-sectional variations in total household energy requirements in India using micro survey data," Energy Policy, Elsevier, vol. 32(15), pages 1723-1735, October.
  14. 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), vol. 24(1).

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