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The Analysis of Consumer Demand for Food in South Africa: An Application of the Modified Almost Ideal Demand System: Some Preliminary Results

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  • Agbola, Frank W.
  • Maitra, Pushkar
  • McLaren, Keith Robert

Abstract

This paper examines consumer demand for food in South Africa. An Almost Ideal Demand System that incorporates socio-economic and demographic factors is specified and estimated using cross-sectional data of 1993 Integrated Household Survey. By utilising a two-stage budgeting procedure, a complete food demand system was estimated. The results indicate that, for food groups (meat and fish, grains, dairy products, fruits, vegetables and other foods), demand is generally price elastic. Meat and fish, grains and dairy products are luxury products, while fruits, vegetables and other foods are necessities. For food commodities, the results indicate that the demand with respect to own-price is generally elastic. The results suggest that, for an increase in income, food expenditure on meat and fish and grains would increase while that on dairy products, vegetables and other foods would decrease. The implications of the empirical results are discussed.

Suggested Citation

  • Agbola, Frank W. & Maitra, Pushkar & McLaren, Keith Robert, 2002. "The Analysis of Consumer Demand for Food in South Africa: An Application of the Modified Almost Ideal Demand System: Some Preliminary Results," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125047, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare02:125047
    DOI: 10.22004/ag.econ.125047
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    References listed on IDEAS

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    1. Giancarlo Moschini & Daniele Moro & Richard D. Green, 1994. "Maintaining and Testing Separability in Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(1), pages 61-73.
    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. Blanciforti, Laura Ann & Green, Richard, 1983. "The Almost Ideal Demand System: A Comparison and Application to Food Groups," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 35(3), pages 1-10, July.
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    Cited by:

    1. Graham,Errol George & Tchale,Hardwick & Ndione,Mamadou, 2020. "An Optimal Rice Policy for Sierra Leone : Balancing Consumer and Producer Welfare," Policy Research Working Paper Series 9369, The World Bank.

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