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A food demand system based on demand for characteristics

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  • Bouis, Howarth E.

Abstract

A food demand system is proposed, based on demand for energy, variety, and tastes of foods. By specifying utility as an explicit function of these characteristics, the entire matrix of demand elasticities can be derived for n foods and one nonfood from prior specification of just four elasticities, while avoiding any assumption of separability between foods. This framework can explain why poorest groups often are most price-responsive, but also can account for highest price-responsiveness by middle income groups. The system is applied to published food consumption data for urban and rural populations in Pakistan. Elasticities are compared with those obtained in a published Pakistan study applying an almost ideal demand system (AIDS).

Suggested Citation

  • Bouis, Howarth E., 1995. "A food demand system based on demand for characteristics," FCND discussion papers 7, International Food Policy Research Institute (IFPRI).
  • Handle: RePEc:fpr:fcnddp:7
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    References listed on IDEAS

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    Cited by:

    1. Gutner, Tammi, 1999. "The political economy of Food subsidy reform in Egypt," FCND briefs 1, International Food Policy Research Institute (IFPRI).
    2. Bouis, Howarth E. & Scott, Gregory J., 1996. "Demand for high-value secondary crops in developing countries," FCND discussion papers 14, International Food Policy Research Institute (IFPRI).
    3. Bouis, Howarth E., 1994. "Agricultural technology and food policy to combat iron deficiency in developing countries," FCND discussion papers 1, International Food Policy Research Institute (IFPRI).
    4. 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), June.
    5. repec:pit:wpaper:269 is not listed on IDEAS

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