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A food demand system based on demand for characteristics

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Author Info
Bouis, Howarth E.
Abstract

A food demand system is proposed, based on demand for energy, variety, and tastes of foods. By specifying utility as an explicit function of these characteristics, the entire matrix of demand elasticities can be derived for n foods and one nonfood from prior specification of just four elasticities, while avoiding any assumption of separability between foods. This framework can explain why poorest groups often are most price-responsive, but also can account for highest price-responsiveness by middle income groups. The system is applied to published food consumption data for urban and rural populations in Pakistan. Elasticities are compared with those obtained in a published Pakistan study applying an almost ideal demand system (AIDS).

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Paper provided by International Food Policy Research Institute (IFPRI) in its series FCND discussion papers with number 7.

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Date of creation: 1995
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Handle: RePEc:fpr:fcnddp:7

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Keywords: Food consumption Pakistan ; mathematical models ; Elasticity (Economics) ;

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  1. Behrman, Jere R & Deolalikar, Anil B & Wolfe, Barbara L, 1988. "Nutrients: Impacts and Determinants," World Bank Economic Review, Oxford University Press, vol. 2(3), pages 299-320, September.
  2. Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June. [Downloadable!] (restricted)
  3. 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. [Downloadable!] (restricted)
  4. Bouis, Howarth & Haddad, Lawrence & Kennedy, Eileen, 1992. "Does it matter how we survey demand for food?: Evidence from Kenya and the Philippines," Food Policy, Elsevier, vol. 17(5), pages 349-360, October. [Downloadable!] (restricted)
  5. Pitt, Mark M, 1983. "Food Preferences and Nutrition in Rural Bangladesh," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 105-14, February. [Downloadable!] (restricted)
  6. Waterfield, Charles, 1985. "Disaggregating food consumption parameters : Designing targeted nutritional interventions," Food Policy, Elsevier, vol. 10(4), pages 337-351, November. [Downloadable!] (restricted)
  7. Blundell, Richard & Ray, Ranjan, 1984. "Testing for Linear Engel Curves and Additively Separable Preferences Using a New Flexible Demand System," Economic Journal, Royal Economic Society, vol. 94(376), pages 800-811, December. [Downloadable!] (restricted)
  8. Timmer, C Peter, 1981. "Is There "Curvature" in the Slutsky Matrix?," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 395-402, August. [Downloadable!] (restricted)
  9. Deaton, A. S., 1975. "The measurement of income and price elasticities," European Economic Review, Elsevier, vol. 6(3), pages 261-273, July. [Downloadable!] (restricted)
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