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Food demand elasticities in Ethiopia: Estimates using household income consumption expenditure (HICE) survey data

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  • Tafere, Kibrom
  • Taffesse, Alemayehu Seyoum
  • Tamru, Seneshaw
  • Tefera, Nigussie
  • Paulos, Zelekawork

Abstract

How households adjust their consumption in response to changes in prices and income is crucial determinant of the effects of various shocks to market prices and commodity supplies. These adjustments in demand are particularly significant in Ethiopia, where many households consume inadequate quantities of calories, protein and other nutrients. Household consumption behaviour in the country is also rather complex. Regional consumption patterns differ considerably with no single staple dominating. Instead, four different cereals (teff, wheat, maize and sorghum) are major staples in parts of the country and even within most regions, two or more food staples account for relatively large shares of total calories and food expenditures1.

Suggested Citation

  • Tafere, Kibrom & Taffesse, Alemayehu Seyoum & Tamru, Seneshaw & Tefera, Nigussie & Paulos, Zelekawork, 2011. "Food demand elasticities in Ethiopia: Estimates using household income consumption expenditure (HICE) survey data," ESSP working papers 11, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:esspwp:11
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    References listed on IDEAS

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    1. Blundell, Richard & Robin, Jean Marc, 1999. "Estimation in Large and Disaggregated Demand Systems: An Estimator for Conditionally Linear Systems," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(3), pages 209-232, May-June.
    2. Ulimwengu, John M. & Workneh, Sindu & Paulos, Zelekawork, 2009. "Impact of soaring food price in Ethiopia: Does location matter?," IFPRI discussion papers 846, International Food Policy Research Institute (IFPRI).
    3. Crawford, Ian & Laisney, Francois & Preston, Ian, 2003. "Estimation of household demand systems with theoretically compatible Engel curves and unit value specifications," Journal of Econometrics, Elsevier, vol. 114(2), pages 221-241, June.
    4. 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.
    5. Steven T. Yen & Biing-Hwan Lin & David M. Smallwood, 2003. "Quasi- and Simulated-Likelihood Approaches to Censored Demand Systems: Food Consumption by Food Stamp Recipients in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 458-478.
    6. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-371, July.
    7. Andreas C. Drichoutis & Stathis Klonaris & Panagiotis Lazaridis & Rodolfo M. Nayga, 2008. "Household food consumption in Turkey: a comment," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(1), pages 93-98, March.
    8. Deaton, Angus, 1988. "Quality, Quantity, and Spatial Variation of Price," American Economic Review, American Economic Association, vol. 78(3), pages 418-430, June.
    9. Brian P. Poi, 2008. "Demand-system estimation: Update," Stata Journal, StataCorp LP, vol. 8(4), pages 554-556, December.
    10. Abebe, Shimeles, 1993. "System of demand equations: theory and applications," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 2(2), pages 137-137.
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    Citations

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    Cited by:

    1. Minten, Bart & Stifel, David & Tamru, Seneshaw, 2012. "Structural Transformation in Ethiopia: Evidence from Cereal Markets:," ESSP research notes 14, International Food Policy Research Institute (IFPRI).
    2. Woldu, Thomas & Abebe, Girum & Lamoot, Indra & Minten, Bart, 2013. "Urban food retail in Africa: The case of Addis Ababa, Ethiopia," ESSP working papers 50, International Food Policy Research Institute (IFPRI).
    3. Tafere, Kibrom & Worku, Ibrahim, 2012. "Consumption Patterns of Livestock Products in Ethiopia: Elasticity Estimates Using HICES (2004/05) Data:," ESSP working papers 38, International Food Policy Research Institute (IFPRI).
    4. repec:bla:agecon:v:49:y:2018:i:1:p:83-95 is not listed on IDEAS
    5. Mellor, John W. & Dorosh, Paul A., 2010. "Agriculture and the economic transformation of Ethiopia:," ESSP working papers 10, International Food Policy Research Institute (IFPRI).
    6. Gelan, Ayele & Engida, Ermias & Caria, A. Stefano & Karugia, Joseph T., 2012. "Integrating livestock in the CAADP framework: Policy analysis using a dynamic computable general equilibrium model for Ethiopia:," ESSP working papers 34, International Food Policy Research Institute (IFPRI).
    7. Berhane, Guush & Paulos, Zelekawork & Tafere, Kibrom & Tamru, Seneshaw, 2011. "Foodgrain consumption and calorie intake patterns in Ethiopia:," ESSP working papers 23, International Food Policy Research Institute (IFPRI).
    8. Ogundari, Kolawole & Arifalo, Sadiat Funmilayo, 2013. "Determinants of Household Demand for Fresh Fruit and Vegetable in Nigeria: A Double Hurdle Approach," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 52(3), pages 1-18, August.

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    Keywords

    Agriculture; consumption; income;

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