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Public Distribution System vs. Market: Analysis of Staple Food Consumption in India Using QUAIDS with Rationing

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  • Kozicka, Marta
  • Kalkuhl, Matthias
  • Weber, Regine

Abstract

The current study explains the impact of the Targeted Public Distribution System (TPDS) in India on total staple food consumption. The study is based on the 68th round of the National Sample Survey of Household Consumer Expenditure. First, we show that under-purchase from TPDS is due to the supply constraints. Next, we estimate a three-­stage demand system for staple foods. In the third stage, we estimate a Quadratic Almost Ideal Demad System with Rationing, where the TPDS grains are treated as strictly rationed goods and the rest of the consumption goods in the system are the market consumed staples.

Suggested Citation

  • Kozicka, Marta & Kalkuhl, Matthias & Weber, Regine, 2015. "Public Distribution System vs. Market: Analysis of Staple Food Consumption in India Using QUAIDS with Rationing," 55th Annual Conference, Giessen, Germany, September 23-25, 2015 209243, German Association of Agricultural Economists (GEWISOLA).
    • Handle: RePEc:ags:gewi15:209243
    DOI: 10.22004/ag.econ.209243
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    References listed on IDEAS

    as
    1. Blundell, Richard & Robin, Jean Marc, 1999. "Estimation in Large and Disaggregated Demand Systems: An Estimator for Conditionally Linear Systems," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(3), pages 209-232, May-June.
    2. Kozicka, Marta & Kalkuhl, Matthias & Saini, Shweta & Brockhaus, Jan, 2014. "Modeling Indian Wheat and Rice Sector Policies," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169808, Agricultural and Applied Economics Association.
    3. Ramaswami, B. & Balakrishnan, P., 2002. "Food prices and the efficiency of public intervention: the case of the public distribution system in India," Food Policy, Elsevier, vol. 27(5-6), pages 419-436.
    4. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
    5. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    6. Shweta Saini & Marta Kozicka, 2014. "Evolution and Critique of Buffer Stocking Policy of India," Working Papers id:6153, eSocialSciences.
    7. Reetika Khera, 2011. "India's Public Distribution System: Utilisation and Impact," Journal of Development Studies, Taylor & Francis Journals, vol. 47(7), pages 1038-1060.
    8. Jean-Marc Robin, 1999. "[Econometrics of systems of demand] [Econométrie des systèmes de demande]," Post-Print hal-02688894, HAL.
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    Keywords

    Demand and Price Analysis; Food Consumption/Nutrition/Food Safety; Food Security and Poverty;
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