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Rice demand in Vietnam: Dietary changes and implications for policy

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  • Hoang, Hoa
  • Meyers, William H.

Abstract

In this study AIDS and QUAIDS estimators with the 2010 VHLSS household survey show that rice is a normal good at the national level with an expenditure elasticity being 0.05. In addition, rice is found to be an inferior good for urban consumers and a normal good for rural consumers with expenditure elasticities being -0.18 and 0.14, respectively. Clearly rice is in transition from a normal good to an inferior good in Vietnam. Even for rural consumers at different income levels rice is estimated to be an inferior good for high-income consumers. In addition, robust Wald test and likelihood ratio test statistics verify that QUAIDS performs better than AIDS although both models yield similar results.

Suggested Citation

  • Hoang, Hoa & Meyers, William H., 2015. "Rice demand in Vietnam: Dietary changes and implications for policy," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196621, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea15:196621
    DOI: 10.22004/ag.econ.196621
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    File URL: http://ageconsearch.umn.edu/record/196621/files/SAEA_Ageconsearch_Rice%20demand%20in%20Vietnam.pdf
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    References listed on IDEAS

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    1. Awudu Abdulai, 2002. "Household Demand for Food in Switzerland. A Quadratic Almost Ideal Demand System," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 138(I), pages 1-18, March.
    2. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
    3. Pangaribowo, Evita Hanie & Tsegai, Daniel W., 2011. "Food Demand Analysis of Indonesian Households with Particular Attention to the Poorest," Discussion Papers 116748, University of Bonn, Center for Development Research (ZEF).
    4. Junko Doi & Kazumichi Iwasa & Koji Shimomura, 2009. "Giffen behavior independent of the wealth level," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 41(2), pages 247-267, November.
    5. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    6. Cupak, Andrej & Pokrivcak, Jan & Rizov, Marian & Alexandri, Cecilia & Luca, Lucian, 2014. "Economic Development and Food Demand in Central and Eastern European Countries: The Case of Romania," 142nd Seminar, May 29-30, 2014, Budapest, Hungary 168929, European Association of Agricultural Economists.
    7. Linh Vu Hoang, 2009. "Estimation of Food Demand from Household Survey Data in Vietnam," Working Papers 12, Development and Policies Research Center (DEPOCEN), Vietnam.
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    Keywords

    Consumer/Household Economics; Demand and Price Analysis;

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