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Application of the Quaids Model to the Food Sector in India

Author

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  • Surabhi Mittal

    (ICRIER, New Delhi 110003, India)

Abstract

Higher economic growth has led to diversification of the consumption bundle of households away from staple food. This has implications for the food policy as demand projections for different commodities impacts the farmers decision to diversify its production base which further has implications for the issue of food security. Thus it becomes important to project the demand, based on most realistic demand elasticities. Using the households consumer expenditure survey of the major National Sample Survey rounds, the paper estimates the price and expenditure elasticity’s of different food items/ groups in India. A two-stage Quadratic AIDS (QUAIDS) model is used to compute coefficients and calculate the demand elasticity’s. In this model assumption of linearity in the expenditure function is given away.

Suggested Citation

  • Surabhi Mittal, 2010. "Application of the Quaids Model to the Food Sector in India," Journal of Quantitative Economics, The Indian Econometric Society, vol. 8(1), pages 42-54, January.
  • Handle: RePEc:jqe:jqenew:v:8:y:2010:i:1:p:42-54
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    References listed on IDEAS

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    1. Deaton, Angus, 1990. "Price elasticities from survey data : Extensions and Indonesian results," Journal of Econometrics, Elsevier, vol. 44(3), pages 281-309, June.
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    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.
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    7. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-597, June.
    8. repec:clg:wpaper:2000-04 is not listed on IDEAS
    9. Awudu Abdulai, 2002. "Household Demand for Food in Switzerland. A Quadratic Almost Ideal Demand System," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 138(I), pages 1-18, March.
    10. S. Mahendra Dev, 2008. "India," Chapters,in: Handbook on the South Asian Economies, chapter 1 Edward Elgar Publishing.
    11. J. V. Meenakshi & Ranjan Ray, 1999. "Regional differences in India's food expenditure pattern: a complete demand systems approach," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(1), pages 47-74.
    12. Brian W. Gould & Hector J. Villarreal, 2006. "An assessment of the current structure of food demand in urban China," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 1-16, January.
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    Cited by:

    1. repec:sae:smppub:v:6:y:2017:i:1:p:59-81 is not listed on IDEAS
    2. Javier García-Enríquez & Cruz A. Echevarría, 2016. "Consistent Estimation of a Censored Demand System and Welfare Analysis: The 2012 VAT Reform in Spain," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(2), pages 324-347, June.
    3. Rudrani Bhattacharya & Abhijit Sen Gupta, 2015. "Food Inflation in India: Causes and Consequences," Working Papers id:7141, eSocialSciences.
    4. Weber, Regine, 2015. "Welfare Impacts of Rising Food Prices: Evidence from India," 2015 Conference, August 9-14, 2015, Milan, Italy 211901, International Association of Agricultural Economists.
    5. Sen Gupta, Abhijit & Bhattacharya, Rudrani & Rao, Narhari, 2014. "Understanding Food Inflation in India," MPRA Paper 58319, University Library of Munich, Germany.
    6. Tukae Mbegalo & Xiaohua Yu, 2016. "The Impact of Food Prices on Household Welfare and Poverty in Rural Tanzania," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 216, Courant Research Centre PEG.
    7. Rahul Anand & Naresh Kumar & Volodymyr Tulin, 2016. "Understanding India’s Food Inflation; The Role of Demand and Supply Factors," IMF Working Papers 16/2, International Monetary Fund.
    8. Rudrani Bhattacharya & Abhijit Sen Gupta, 2017. "What Role Did Rising Demand Play in Driving Food Prices Up?," South Asian Journal of Macroeconomics and Public Finance, , vol. 6(1), pages 59-81, June.

    More about this item

    Keywords

    QUAIDS Model; Food Demand Elasticity; India;

    JEL classification:

    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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