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Regional differences in India's food expenditure pattern: a complete demand systems approach

Author

Listed:
  • J. V. Meenakshi

    (Department of Economics, Delhi School of Economics, Delhi University, Delhi, India)

  • Ranjan Ray

    (School of Economics, University of Tasmania, Hobart, Tasmania, Australia)

Abstract

This paper analyses India's food expenditure recognizing regional differences in preferences and prices. The results reveal large regional differences in expenditure pattern implying that nutrient enhancing programmes must recognize this diversity. Household composition is an important determinant of consumption, though the nature of demographic impact varies across regions. The popular AIDS yields biased elasticity estimates, especially for cereals, making its use inappropriate in developing countries. In policy applications, choice of a general demand system is important in evaluating the impact of price and income changes on basic consumption, and in designing optimal tax systems, but not necessarily in evaluating tax reforms. Copyright © 1999 John Wiley & Sons, Ltd.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:jintdv:v:11:y:1999:i:1:p:47-74
    DOI: 10.1002/(SICI)1099-1328(199901/02)11:1<47::AID-JID549>3.0.CO;2-Y
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    References listed on IDEAS

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    Cited by:

    1. Meenakshi, J. V. & Ray, Ranjan, 2002. "Impact of household size and family composition on poverty in rural India," Journal of Policy Modeling, Elsevier, vol. 24(6), pages 539-559, October.
    2. Kumar, Praduman & Dey, Madan Mohan & Paraguas, Ferdinand J., 2005. "Demand for Fish by Species in India: Three-stage Budgeting Framework," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 18(2).
    3. Aditya R. Khanal & Ashok K. Mishra & Walter Keithly, 2016. "Heterogeneity in Food Demand among Rural Indian Households: The Role of Demographics," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 517-544, September.
    4. Fiedler, John L. & Mwangi, Dena M., 2016. "Improving household consumption and expenditure surveys’ food consumption metrics: Developing a strategic approach to the unfinished agenda:," IFPRI discussion papers 1570, International Food Policy Research Institute (IFPRI).
    5. Mwangi, Dena M. & Fiedler, John L. & Sununtnasuk, Celeste, 2017. "Imputing nutrient intake from foods prepared and consumed away from home and other composite foods: Exploring extensions of the Subramanian–Deaton cost per calorie approach," IFPRI discussion papers 1596, International Food Policy Research Institute (IFPRI).
    6. repec:spr:soinre:v:137:y:2018:i:1:d:10.1007_s11205-017-1602-8 is not listed on IDEAS
    7. Puja Guha, 2004. "HABIT FORMATION IN CONSUMPTION: A Case Study of Rural India," Econometrics 0412012, EconWPA.
    8. 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.
    9. Don J. DeVoretz & Florin P. Vadean, 2008. "Cultural Differences in the Remittance Behaviour of Households: Evidence from Canadian Micro Data," Studies in Economics 0814, School of Economics, University of Kent.
    10. Abiodun Elijah Obayelu & V.O. Okoruwa & O.I.Y. Ajani, 2009. "Cross-sectional analysis of food demand in the North Central, Nigeria: The quadratic almost ideal demand system (QUAIDS) approach," China Agricultural Economic Review, Emerald Group Publishing, vol. 1(2), pages 173-193, January.
    11. Fiedler, John L. & Mwangi, Dena M., 2016. "Using household consumption and expenditure surveys to make inferences about food consumption, nutrient intakes and nutrition status: How important is it to adjust for meal partakers?," IFPRI discussion papers 1571, International Food Policy Research Institute (IFPRI).
    12. Pachauri, Shonali, 2004. "An analysis of cross-sectional variations in total household energy requirements in India using micro survey data," Energy Policy, Elsevier, vol. 32(15), pages 1723-1735, October.
    13. Vijay Paul Sharma & Dinesh Jain, 2011. "High-Value Agriculture in India: Past Trends and Future Prospects," Working Papers id:4374, eSocialSciences.
    14. Surabhi Mittal, 2006. "Structural Shift in Demand for Food - Projections for 2020," Macroeconomics Working Papers 22223, East Asian Bureau of Economic Research.
    15. Olorunfemi Sola, 2013. "Demand for food in Ondo state, Nigeria: Using quadratic almost ideal demand system," E3 Journal of Business Management and Economics., E3 Journals, vol. 4(1), pages 001-019.
    16. Sharma, Vijay Paul & Jain, Dinesh, 2011. "High-Value Agriculture in India: Past Trends and Future Prospects," IIMA Working Papers WP2011-07-02, Indian Institute of Management Ahmedabad, Research and Publication Department.
    17. Surabhi Mittal, 2006. "Structural Shift in Demand for Food: Projections for 2020," Indian Council for Research on International Economic Relations, New Delhi Working Papers 184, Indian Council for Research on International Economic Relations, New Delhi, India.
    18. 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.
    19. Kumar, Praduman & Kumar, Anjani & Parappurathu, Shinoj & Raju, S.S., 2011. "Estimation of Demand Elasticity for Food Commodities in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(1).
    20. Liu, Haiyan & Wahl, Thomas I. & Seale, James L. & Bai, Junfei, 2015. "Household composition, income, and food-away-from-home expenditure in urban China," Food Policy, Elsevier, vol. 51(C), pages 97-103.
    21. Bopape, Lesiba, 2006. "Heterogeneity of Household Food Expenditure Patterns in South Africa," 2006 Annual meeting, July 23-26, Long Beach, CA 21300, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    22. Mohamed Amara & Hatem Jemmali, 2015. "Household and Contextual Indicators of Poverty in Tunisia: a Multilevel Analysis," Working Papers 968, Economic Research Forum, revised Nov 2015.

    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D19 - Microeconomics - - Household Behavior - - - Other
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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