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Application of the Quaids Model to the Food Sector in India

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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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    Cited by:

    1. Kavitha, V. & Umanath, M. & Paramasivam, R. & Chandran, K., 2016. "Determinants of Consumption Probability and Demand for Fruits in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 29(Conferenc).
    2. 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.
    3. Bayu Kharisma & Armida S. Alisjahbana & Sutyastie Soemitro Remi & Putri Praditya, 2020. "Application of the Quadratic Almost Ideal Demand System (QUAIDS) Model in the Demand of the Household Animal Sourced Food in West Java," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(1), March.
    4. Sen Gupta, Abhijit & Bhattacharya, Rudrani & Rao, Narhari, 2014. "Understanding Food Inflation in India," MPRA Paper 58319, University Library of Munich, Germany.
    5. Nayana Raju & Ganga Devi & Meera Padaliya, 2023. "Consumption pattern and demand forecasting of coarse cereals in Gujarat, India," SN Business & Economics, Springer, vol. 3(3), pages 1-19, March.
    6. K. U. Gopakumar & Vishwanath Pandit, 2017. "Food inflation in India: protein products," Indian Economic Review, Springer, vol. 52(1), pages 157-179, December.
    7. Olabisi, Michael & Tschirley, David L. & Nyange, David & Awokuse, Titus, 2018. "The Challenge of Substituting Sunflower Oil for Imported Palm Oil: Evidence from Tanzania," Feed the Future Innovation Lab for Food Security Policy Research Papers 275677, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
    8. Kheda, V & Saravanakumarb, V & Umesha, KB, 2018. "Does farm size explain food consumption pattern? evidence from semi-arid regions of India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 31(2).
    9. Bhuvandas, Dhanyashree & Gundimeda, Haripriya, 2020. "Welfare impacts of transport fuel price changes on Indian households: An application of LA-AIDS model," Energy Policy, Elsevier, vol. 144(C).
    10. 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.
    11. Ikudayisi, Adesola & Okoruwa, Victor O., 2021. "Urban Differential Effects on Food Demand in Nigeria," 2021 Conference, August 17-31, 2021, Virtual 315142, International Association of Agricultural Economists.
    12. Braha, Kushtrim & Cupak, Andrej & Qineti, Artan & Pokrivcak, Jan, 2018. "Food Demand System in Transition Economies: Evidence from Kosovo," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272050, European Association of Agricultural Economists.
    13. Javier García-Enríquez & Cruz A. Echevarría, 2018. "Demand for culture in Spain and the 2012 VAT rise," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 42(3), pages 469-506, August.
    14. Rahul Anand & Naresh Kumar & Mr. Volodymyr Tulin, 2016. "Understanding India’s Food Inflation: The Role of Demand and Supply Factors," IMF Working Papers 2016/002, International Monetary Fund.
    15. Bjelle, Eivind Lekve & Wiebe, Kirsten S. & Többen, Johannes & Tisserant, Alexandre & Ivanova, Diana & Vita, Gibran & Wood, Richard, 2021. "Future changes in consumption: The income effect on greenhouse gas emissions," Energy Economics, Elsevier, vol. 95(C).
    16. 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.
    17. Rudrani Bhattacharya & Abhijit Sen Gupta, 2015. "Food Inflation in India: Causes and Consequences," Working Papers id:7141, eSocialSciences.

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    More about this item

    Keywords

    QUAIDS Model; Food Demand Elasticity; India;
    All these keywords.

    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; Animal Welfare Policy

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