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Consumer Demand For Meat In Kenya: An Examination Of The Linear Approximate Almost Ideal Demand System

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  • Shibia, Mumina
  • Rahman, Shaikh
  • Chidmi, Benaissa

Abstract

Per capita consumption of meat products has been rapidly increasing in Sub-Saharan African countries including Kenya. This paper examines a household demand system for five meat products in Kenya: beef with bones, boneless beef, mutton, chicken, and pork. The Linear Approximate Almost Ideal Demand System (LA/AIDS) model is used because of its flexibility and ease of application with household expenditure data. The LA/AIDS model is estimated using household consumption data obtained from Kenya Integrated Household Budget Survey of 2013. Expectedly, the estimates of uncompensated and compensated own price elasticities of demand for all five meat products are negative but larger than –1. Although the estimates of uncompensated cross price elasticities are negative implying that these meat products are gross complements, the estimates of compensated cross price elasticities are found to be positive indicating a quite strong substitution between these meat products. Expenditure elasticities of demand for the meat products are positive implying normal goods. Mutton/goat is a necessity good (elasticity <1) among the Kenyan households.

Suggested Citation

  • Shibia, Mumina & Rahman, Shaikh & Chidmi, Benaissa, 2017. "Consumer Demand For Meat In Kenya: An Examination Of The Linear Approximate Almost Ideal Demand System," 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama 252789, Southern Agricultural Economics Association.
  • Handle: RePEc:ags:saea17:252789
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    File URL: http://ageconsearch.umn.edu/record/252789/files/Shibia%20et%20al%20paper%20for%20SAEA%20Conference.pdf
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    References listed on IDEAS

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    1. William Barnett & Ousmane Seck, 2006. "Rotterdam vs Almost Ideal Models: Will the Best Demand Specification Please Stand Up?," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200605, University of Kansas, Department of Economics.
    2. Rosegrant, Mark W. & Cline, Sarah A. & Li, Weibo & Sulser, Timothy B. & Valmonte-Santos, Rowena A., 2005. "Looking ahead: long-term prospects for Africa's agricultural development and food security," 2020 vision discussion papers 41, International Food Policy Research Institute (IFPRI).
    3. Julian M. Alston & James A. Chalfant, 1993. "The Silence of the Lambdas: A Test of the Almost Ideal and Rotterdam Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 304-313.
    4. Taljaard, Pieter R. & Alemu, Zerihun Gudeta & van Schalkwyk, Herman D., 2004. "The demand for meat in South Africa: An almost ideal estimation," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 43(4), pages 1-14, December.
    5. Gamba, Paul, 2005. "Urban Domestic Consumption Patterns for Meat: Trends and Policy Implications," Working Papers 202626, Egerton University, Tegemeo Institute of Agricultural Policy and Development.
    6. Richard Green & Julian M. Alston, 1990. "Elasticities in AIDS Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 442-445.
    7. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    8. Isabel Vanslembrouck & Guido Van Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri‐environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511, November.
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    Cited by:

    1. Korir, Lilian & Rizov, Marian & Ruto, Eric, 2018. "Analysis of household food demand and its implications on food security in Kenya: an application of QUAIDS model," 92nd Annual Conference, April 16-18, 2018, Warwick University, Coventry, UK 273474, Agricultural Economics Society.

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    Keywords

    Consumer/Household Economics;

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