Advanced Search
MyIDEAS: Login to save this paper or follow this series

Liquidity Constraint and the Demand for Food: Income Elasticity of Calorie in Rural Ethiopia

Contents:

Author Info

  • Tekabe Ayalew
Registered author(s):

    Abstract

    In this study we attempt to add to the empirical literature by estimating the income elasticity of calorie intake for rural Ethiopia. We have extend the existing literature in two directions. First, using data collected from rural Ethiopia during 1994-95, efforts were made to separate the effects of permanent and transitory income on calorie consumption. Second, on the grounds that income elasticity of calorie consumption differs between those who can smooth their consumption and those who can not do so due to inability to borrow against future income, we considered these two groups explicitly. The results revealed that the calorie elasticity with respect to income (permanent, transitory and total) is consistently higher for credit constrained households. Specifically the elasticity with respect to permanent income ranges from 90 percent for constrained to 42 percent for constrained households, depending on the source of income and estimation procedure. Not surprisingly, the elasticity with respect to both permanent and transitory incomes is not different from zero for non constrained households. For the constrained households, calorie consumption responds to even transitory income, though the figure is less than the corresponding figure for permanent income. Apparently, differentiating households in terms of their ability to smooth consumption, and decomposing observed income into permanent and otherwise partly explains why the evidence on the estimates of the income elasticity of calorie intake are so diverse.

    Download Info

    If 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.
    File URL: http://www.econ.kuleuven.be/eng/ew/discussionpapers/Dps00/Dps0027.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by Katholieke Universiteit Leuven, Centrum voor Economische Studiën in its series Center for Economic Studies - Discussion papers with number ces0027.

    as in new window
    Length:
    Date of creation: Mar 2000
    Date of revision:
    Handle: RePEc:ete:ceswps:ces0027

    Contact details of provider:
    Postal: Naamsestraat 69, 3000 Leuven
    Phone: +32-(0)16-32 67 25
    Fax: +32-(0)16-32 67 96
    Email:
    Web page: http://www.econ.kuleuven.be/ew
    More information through EDIRC

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ete:ceswps:ces0027. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karla Vander Weyden).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.