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Demand for Food in the Philippines: Responses to Price and Income Changes

Author

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  • Arsenio M. Balisacan

    (School of Economics, University of the Philippines Diliman)

Abstract

A member of the class of demand systems proposed by Blundell et al. (1993) is employed to improve the structure of food consumption responses in the Philippines. In general it is found that the income elasticity of demand for cereal is about 0.1 and that this elasticity does not drop rapidly with the level of income as is often suggested in the literature. This response is consistent with expectations concerning conversion ratios of cereal consumption to calorie-intake and gains in body weight. Moreover, while food price responses vary from one income group to another, or between rural and urban areas, the variation is not as large as has commonly been presumed.

Suggested Citation

  • Arsenio M. Balisacan, 1994. "Demand for Food in the Philippines: Responses to Price and Income Changes," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 31(2), pages 137-163, December.
  • Handle: RePEc:phs:prejrn:v:31:y:1994:i:2:p:137-163
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/133/466
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    Cited by:

    1. Mariano, Marc Jim M. & Giesecke, James A., 2014. "The macroeconomic and food security implications of price interventions in the Philippine rice market," Economic Modelling, Elsevier, vol. 37(C), pages 350-361.
    2. Marc Jim M. Mariano & James A. Giesecke & Nhi H. Tran, 2015. "The effects of domestic rice market interventions outside business-as-usual conditions for imported rice prices," Applied Economics, Taylor & Francis Journals, vol. 47(8), pages 809-832, February.
    3. Tomoki Fujii, 2014. "Is urban food demand in the Philippines different from China?," Working Papers 18-2014, Singapore Management University, School of Economics.
    4. Balisacan, Arsenio M. & Ravago, Majah-Leah V., 2003. "THE rice problem in the Philippines: trends, constraints, and policy imperatives," MPRA Paper 24865, University Library of Munich, Germany.
    5. Orbeta, Aniceto Jr. C. & Alba, Michael M., 1998. "Simulating the Impact of Macroeconomic Policy Changes on Macronutrient Availability in Households," Philippine Journal of Development JPD 1998 Vol. XXV No. 1-e, Philippine Institute for Development Studies.

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