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Emerging food demand behaviors in Malaysia: Incorporating quality effects in demand analyses

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  • Tey, (John) Yeong-Sheng
  • Shamsudin, Mad Nasir
  • Mohamed, Zainalabidin
  • Abdullah, Amin Mahir
  • Radam, Alias

Abstract

In this study, the focus is on analyzing food demand behaviors in Malaysia. To be more specific, this study intends to estimate demand elasticities for twelve food categories with incorporation of food quality effects in the demand analyses. This study analyses the data from the Household Expenditure Survey 2004/2005 by Linear Approximate Almost Ideal Demand System (LA/AIDS) and unit value function. The estimated expenditure elasticities indicate that there will be growing demand for all the food categories, especially meat, fish, vegetables, oils and fats, and fruits. The own-price elasticities for rice, eggs, beverage, and oils & fats are more elastic than the rest of the food categories. This study also shows that there is quality effect in food demand.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14832.

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Date of creation: 11 Oct 2008
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Handle: RePEc:pra:mprapa:14832

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Keywords: Food; demand behaviors. quality effects; demand analysis;

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  1. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  2. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation Of Food Demand And Nutrient Elasticities From Household Survey Data," Technical Bulletins 33579, United States Department of Agriculture, Economic Research Service.
  3. Akira Ishida & Siong-Hook Law & Yoshihisa Aita, 2003. "Changes in food consumption expenditure in Malaysia," Agribusiness, John Wiley & Sons, Ltd., vol. 19(1), pages 61-76.
  4. 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.
  5. Tey Yeong Sheng & Mad Nasir Shamsudin & Zainalabidin Mohamed & Amin Mahir Abdullah & Alias Radam, 2008. "A Complete Demand System of Food in Malaysia," The IUP Journal of Agricultural Economics, IUP Publications, vol. 0(3), pages 17-29, July.
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