IDEAS home Printed from https://ideas.repec.org/a/wly/agribz/v23y2007i4p511-527.html
   My bibliography  Save this article

Household vegetable demand in the Philippines: Is there an urban-rural divide?

Author

Listed:
  • Maria Erlinda M. Mutuc

    (Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX 79409-2132)

  • Suwen Pan

    (Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX 79409-2132)

  • Roderick M. Rejesus

    (Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, NC 27695-8109)

Abstract

A Nonlinear Quadratic Almost Ideal Demand System (NQAIDS) that accounts for censoring and endogeneity problems is used to assess the vegetable demand behavior of rural and urban households in the Philippines. Detailed household consumption data for a number of vegetable commodities are utilized in the analysis. The results show that most of the expenditure and own-price elasticities of the vegetables analyzed are near or larger than unitary in both rural and urban areas. For majority of the vegetable commodities examined, only the expenditure elasticity is significantly different between rural and urban households. On the other hand, own-price and cross-price elasticities of most vegetables do not significantly differ between rural and urban households. The disaggregate vegetable demand elasticities in this study, as well as the insights from the rural|urban comparisons, provide valuable information that can be utilized for the analysis and design of various food-related policies in the Philippines. [JEL Classification: R21; Q11] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 511-527, 2007.

Suggested Citation

  • Maria Erlinda M. Mutuc & Suwen Pan & Roderick M. Rejesus, 2007. "Household vegetable demand in the Philippines: Is there an urban-rural divide?," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 511-527.
    • Handle: RePEc:wly:agribz:v:23:y:2007:i:4:p:511-527
    DOI: 10.1002/agr.20137
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1002/agr.20137
    File Function: Link to full text; subscription required
    Download Restriction: no
    File URL: https://libkey.io/10.1002/agr.20137?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. C. Peter Timmer & Harold Alderman, 1979. "Estimating Consumption Parameters for Food Policy Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 982-987.
    2. GianCarlo Moschini, 2001. "A Flexible Multistage Demand System Based on Indirect Separability," Southern Economic Journal, John Wiley & Sons, vol. 68(1), pages 22-41, July.
    3. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
    4. Lyssiotou, Panayiota & Pashardes, Panos & Stengos, Thanasis, 2002. "Nesting quadratic logarithmic demand systems," Economics Letters, Elsevier, vol. 76(3), pages 369-374, August.
    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.
    6. Manrique, Justo & Jensen, Helen H., 2006. "Socioeconomic Factors Affecting Household Expenditures on Fresh and Prepared Seafood: The Spanish Case," ISU General Staff Papers 200605010700001262, Iowa State University, Department of Economics.
    7. Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
    8. Suwen Pan & Cheng Fang & Jaime Malaga, 2006. "Alcoholic beverage consumption in China: a censored demand system approach," Applied Economics Letters, Taylor & Francis Journals, vol. 13(15), pages 975-979.
    9. Kellie Curry Raper & Maria Namakhoye Wanzala & Rodolfo Nayga, 2002. "Food expenditures and household demographic composition in the US: a demand systems approach," Applied Economics, Taylor & Francis Journals, vol. 34(8), pages 981-992.
    10. 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.
    11. Garrett, James L., ed. & Ruel, Marie T., ed., 2000. "Achieving urban food and nutrition security in the developing world," 2020 vision focus 3, International Food Policy Research Institute (IFPRI).
    12. repec:phd:pjdevt:jpd_1998_vol__xxv_no__1-e is not listed on IDEAS
    13. GianCarlo Moschini, 2001. "A Flexible Multistage Demand System Based on Indirect Separability," Southern Economic Journal, John Wiley & Sons, vol. 68(1), pages 22-41, July.
    14. Quisumbing, Agnes R. & Valerio, Teresita E. & Red, Evangeline R. & Villavieja, Gracia M., 1988. "Flexible Functional Form Estimates of Philippine Demand Elasticities for Nutrition Policy Simulation," Working Papers WP 1988-13, Philippine Institute for Development Studies.
    15. Pofahl, Geoffrey M. & Capps, Oral, Jr. & Clauson, Annette L., 2005. "Demand for Non-Alcoholic Beverages: Evidence From The ACNielsen Home Scan Panel," 2005 Annual meeting, July 24-27, Providence, RI 19441, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Harald Tauchmann, 2005. "Efficiency of two-step estimators for censored systems of equations: Shonkwiler and Yen reconsidered," Applied Economics, Taylor & Francis Journals, vol. 37(4), pages 367-374.
    17. Michael D. Hammig & Ron C. Mittelhammer, 1982. "An Evaluation of Import Tariffs in the Canada-U.S. Fresh Tomato Market," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 30(2), pages 133-152, July.
    18. Feng, Xudong & Chern, Wen S., 2000. "Demand For Healthy Food In The United States," 2000 Annual meeting, July 30-August 2, Tampa, FL 21857, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, September.
    20. Llanto, Gilberto M., 1998. "Philippine Households' Response to Price and Income Changes," Research Paper Series RPS 1998-02, Philippine Institute for Development Studies.
    21. Diansheng Dong & J.S. Shonkwiler & Oral Capps, 1998. "Estimation of Demand Functions Using Cross-Sectional Household Data: The Problem Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 466-473.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abiodun O. OTUNAIYA & Adebayo M. SHITTU, 2014. "Complete household demand system of vegetables in Ogun State, Nigeria," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(11), pages 509-516.
    2. Go, Eugenia, 2020. "Over Land and Over Sea: Domestic Trade Frictions in the Philippines," ADB Economics Working Paper Series 611, Asian Development Bank.
    3. Eugenia Go, 2022. "Overland and Oversea: Domestic Trade Frictions in the Philippines," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 39(02), pages 75-118, September.
    4. Eugenia Go, 2020. "Trade implications of transport cost in the Philippines," Economics PhD Theses 0320, Department of Economics, University of Sussex Business School.
    5. Obisesan, Adekemi, 2021. "Households’ Demand for Fruits and Vegetables in Nigeria: Panel QUAIDS Approach," 2021 Conference, August 17-31, 2021, Virtual 315858, International Association of Agricultural Economists.
    6. Tan, Andrew K. G. & Yen, Steven T. & Hasan, Abdul Rahman & Muhamed, Kamarudin, 2014. "Household Expenditures on Vegetables in Malaysia," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(4), pages 1-19, November.
    7. Tomoki Fujii, 2014. "Is urban food demand in the Philippines different from China?," Working Papers 18-2014, Singapore Management University, School of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pan, Suwen & Jensen, Helen H., 2008. "Does the Food Stamp Program Affect Food Security Status and the Composition of Food Expenditures?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 21-35, April.
    2. Abiodun O. OTUNAIYA & Adebayo M. SHITTU, 2014. "Complete household demand system of vegetables in Ogun State, Nigeria," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(11), pages 509-516.
    3. Julia Bronnmann & Stefan Guettler & Jens-Peter Loy, 2019. "Efficiency of correction for sample selection in QUAIDS models: an example for the fish demand in Germany," Empirical Economics, Springer, vol. 57(4), pages 1469-1493, October.
    4. Dey, Madan Mohan & Garcia, Yolanda T. & Kumar, Praduman & Piumsombun, Somying & Haque, Muhammad Sirajul & Li, Luping & Radam, Alias & Senaratne, Athula & Khiem, Nguyen Tri & Koeshendrajana, Sonny, 2008. "Demand for fish in Asia: a cross-country analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 1-18.
    5. Malaga, Jaime E. & Pan, Suwen & Duch-Carvallo, Teresa, 2009. "Did Mexican Meat Demand Change under NAFTA?," 2009 Conference, August 16-22, 2009, Beijing, China 51430, International Association of Agricultural Economists.
    6. Fabrizio balli & Silvia Tiezzi, 2008. "Households Consumption Patterns and Equivalence Scales in Italy: 1997-2004," Department of Economics University of Siena 535, Department of Economics, University of Siena.
    7. Ole Boysen, 2016. "Food Demand Characteristics in Uganda: Estimation and Policy Relevance," South African Journal of Economics, Economic Society of South Africa, vol. 84(2), pages 260-293, June.
    8. A. Montini, 1999. "I consumi alimentari delle famiglie italiane: un modello per le decisioni di consumo extradomestico utilizzando i microdati di spesa familiare," Working Papers 364, Dipartimento Scienze Economiche, Universita' di Bologna.
    9. Darwin Cortes & Jorge Perez, 2010. "El Consumo de los Hogares Colombianos, 2006-2007: Estimación de Sistemas de Demanda," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, December.
    10. Peltner, Jonas & Thiele , Silke, 2021. "Elasticities of Food Demand in Germany – A Demand System Analysis Using Disaggregated Household Scanner Data," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 70(01), January.
    11. Núñez-Sánchez, Ramón & Otoya-Chavarría, Marco & Soberón, Alexandra, 2024. "Price and budget elasticities under utility poverty policies in Spain," Utilities Policy, Elsevier, vol. 88(C).
    12. Paula Carvalho Pereda & Denisard Cneio de Oliveira Alves, 2008. "Demand for Nutrients in Brazil," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211136590, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    13. Toshinobu Matsuda, 2006. "A trigonometric flexible consumer demand system," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 145-162, February.
    14. Malaga, Jaime E. & Pan, Suwen & Duch-Carvallo, Teresa, 2010. "Mexican Meat demand Parameters Before and After NAFTA: Evidence from Household Surveys 1992–2004," Journal of Food Distribution Research, Food Distribution Research Society, vol. 41(3), pages 1-9, November.
    15. Richard Ochmann, 2014. "Differential income taxation and household asset allocation," Applied Economics, Taylor & Francis Journals, vol. 46(8), pages 880-894, March.
    16. Luigi Cembalo & Francesco Caracciolo & Eugenio Pomarici, 2014. "Drinking cheaply: the demand for basic wine in Italy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), pages 374-391, July.
    17. Silva, Andres & Dharmasena, Senarath, 2013. "Modeling Seasonal Unit Roots as a Simple Empirical Method to Handle Autocorrelation in Demand Systems: Evidence from UK Expenditure Data," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149928, Agricultural and Applied Economics Association.
    18. Mette Lunde Christensen, 2002. "Heterogeneity in consumer demands and the income effect: evidence from panel data," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C4-1, International Conferences on Panel Data.
    19. Rodrigo García Arancibia, 2013. "Curvas de Engel de alimentos fuera del hogar según circunstancia de consumo. el caso de Argentina," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, May.
    20. Peltner, Jonas & Thiele, Silke, 2021. "Elasticities of Food Demand in Germany – A Demand System Analysis Using Disaggregated Household Scanner Data," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 70(01), January.

    More about this item

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:agribz:v:23:y:2007:i:4:p:511-527. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.