Income Elasticity Of Rice Demand In Japan And Its Implications: Cross-Sectional Data Analysis
AbstractResearchers believe that rice in developed countries such as Japan became an inferior good a few decades ago. This study employs the flexible complete demand system for the recent cross-sectional data in Japan. Our results clearly show that rice in Japan is a normal good contrary to the preceding studies. The objective of this research is to analyze the food consumption patterns and to conduct econometric analysis of food demand structure. We use the monthly basis cross-sectional household data, Annual Report on the Family Income and Expenditure Survey (FIES) in 1997. Food items are non-glutinous rice, bread, noodle, fresh fish, and shellfish, fresh meat, milk, eggs, fresh vegetables, fresh fruits, fats and oil, and food away from home. We apply various single equation models: Working-Leser model is estimated by OLS, Heckman's two-step estimator, and Tobit estimator. All coefficients have correct signs and are statistically significant. For the complete demand system analysis, we apply the almost ideal demand (AIDS) system. To correct a censored dependent variable problem, we additionally utilize a censored regression approach. Results from AIDS models show that the expenditure elasticity of rice is positive and close to one. Marshallian and Hicksian own-price elasticities for rice are highly elastic for all models. Fresh meats and rice are mild complements in all models; however, fresh fish and rice show the mixed results.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2000 Annual meeting, July 30-August 2, Tampa, FL with number 21755.
Date of creation: 2000
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
AIDS model; Cross-section; Income Elasticity; Japan; Rice Consumption; Consumer/Household Economics; Food Consumption/Nutrition/Food Safety;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kako, Toshiyuki & Gemma, Masahiko & Ito, Shoichi, 1997. "Implications of the minimum access rice import on supply and demand balance of rice in Japan," Agricultural Economics, Blackwell, vol. 16(3), pages 193-204, August.
- Heckman, James J, 1978.
"Dummy Endogenous Variables in a Simultaneous Equation System,"
Econometric Society, vol. 46(4), pages 931-59, July.
- James J. Heckman, 1977. "Dummy Endogenous Variables in a Simultaneous Equation System," NBER Working Papers 0177, National Bureau of Economic Research, Inc.
- Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-51, November.
- Moschini, GianCarlo, 1995. "Units of Measurement and the 'Stone Index' In Demand System Estimation," Staff General Research Papers 5058, Iowa State University, Department of Economics.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Moschini, GianCarlo, 1998. "Semiflexible Almost Ideal Demand System, The," Staff General Research Papers 1193, Iowa State University, Department of Economics.
- Fujiki, Hiroshi, 1999. "The Structure of Rice Production in Japan and Taiwan," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 387-400, January.
- Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-59, June.
- Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
- Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-71, July.
- Frank Asche & Cathy R. Wessells, 1997. "On Price Indices in the Almost Ideal Demand System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1182-1185.
- Moschini, Giancarlo, 1998. "The semiflexible almost ideal demand system," European Economic Review, Elsevier, vol. 42(2), pages 349-364, February.
- Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-56, May.
- Lee, Lung-Fei & Pitt, Mark M, 1986. "Microeconometric Demand Systems with Binding Nonnegativity Constraints: The Dual Approach," Econometrica, Econometric Society, vol. 54(5), pages 1237-42, September.
- Bouis, Howarth E. & Haddad, Lawrence J., 1992. "Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range," Journal of Development Economics, Elsevier, vol. 39(2), pages 333-364, October.
- Bouis, Howarth E., 1994. "The effect of income on demand for food in poor countries: Are our food consumption databases giving us reliable estimates?," Journal of Development Economics, Elsevier, vol. 44(1), pages 199-226, June.
- Hiroshi Fujiki, 2000. "Japanese Rice Market Liberalization: A Competitive Equilibrium Approach," The Japanese Economic Review, Japanese Economic Association, vol. 51(4), pages 492-518, December.
- Mauricio V.L. Bittencourt & Ratapol P. Teratanavat & Wen S. Chern, 2007.
"Food consumption and demographics in Japan: Implications for an aging population,"
John Wiley & Sons, Ltd., vol. 23(4), pages 529-551.
- Mauricio V. L. Bittencourt & Ratapol P. Teratanavat & Wen S. Chern, 2005. "Food Consumption and Demographics in Japan: Implications for an Aging Population," Working Papers 0026, Universidade Federal do Paraná, Department of Economics.
- Bittencourt, Mauricio V.L. & Teratanavat, Ratapol P. & Chern, Wen S., 2004. "Examining Food Consumption In Japan Under Life-Cycle Hypothesis: Implication From Cross-Sectional Data," 2004 Annual meeting, August 1-4, Denver, CO 20070, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.