Estimation of Food Demand from Household Survey Data in Vietnam
AbstractThis paper analyzes food consumption patterns of Vietnamese households, using a complete demand system and socio-demographic information. Demand elasticities are estimated using the AIDS model and the latest Vietnamese household survey data in 2006. The results indicate that food consumption pattern in Vietnam are affected by income, price as well as socioeconomic and geographic factors. All food has positive expenditure elasticities and negative own-price elasticities. In particular, rice has mean expenditure elasticity of 0.36 and mean own-price elasticity of -0.80. Thus, an increase in the price in rice by one percent will reduce rice consumption by 0.8 percent, on average. On the other hand, an increase in the income by 1 percent leads to an increase in rice demand by 0.36 percent. It indicates that food consumption in urban and rural areas, and among regions and income groups are different. It points out that targeted food policies should be formulated based on specific food demand patterns in the groups.
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Bibliographic InfoPaper provided by Development and Policies Research Center (DEPOCEN), Vietnam in its series Working Papers with number 12.
Length: 25 pages
Date of creation: 2009
Date of revision:
Vietnam; food consumption; food demand; AIDS; elasticity;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-06-03 (Agricultural Economics)
- NEP-ALL-2009-06-03 (All new papers)
- NEP-DEV-2009-06-03 (Development)
- NEP-SEA-2009-06-03 (South East Asia)
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- Manisha Chakrabarty & Amita Majumder & Ranjan Ray, 2012. "Preferences, Spatial Prices and Inequality," Development Research Unit Working Paper Series, Monash University, Department of Economics 52-12, Monash University, Department of Economics.
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