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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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    File URL: http://www.ifpri.org/sites/default/files/publications/dp07.pdf
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    References listed on IDEAS

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    1. C. Peter Timmer & Harold Alderman, 1979. "Estimating Consumption Parameters for Food Policy Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 61(5), pages 982-987.
    2. Pitt, Mark M, 1983. "Food Preferences and Nutrition in Rural Bangladesh," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 105-114, February.
    3. Bouis, Howarth E. & Haddad, Lawrence J., 1992. "Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range," Journal of Development Economics, Elsevier, vol. 39(2), pages 333-364, October.
    4. Timmer, C Peter, 1981. "Is There "Curvature" in the Slutsky Matrix?," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 395-402, August.
    5. Waterfield, Charles, 1985. "Disaggregating food consumption parameters : Designing targeted nutritional interventions," Food Policy, Elsevier, vol. 10(4), pages 337-351, November.
    6. Deaton, A. S., 1975. "The measurement of income and price elasticities," European Economic Review, Elsevier, vol. 6(3), pages 261-273, July.
    7. Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June.
    8. Bouis, Howarth & Haddad, Lawrence & Kennedy, Eileen, 1992. "Does it matter how we survey demand for food?: Evidence from Kenya and the Philippines," Food Policy, Elsevier, vol. 17(5), pages 349-360, October.
    9. Behrman, Jere R & Deolalikar, Anil B & Wolfe, Barbara L, 1988. "Nutrients: Impacts and Determinants," World Bank Economic Review, World Bank Group, vol. 2(3), pages 299-320, September.
    10. Blundell, Richard & Ray, Ranjan, 1984. "Testing for Linear Engel Curves and Additively Separable Preferences Using a New Flexible Demand System," Economic Journal, Royal Economic Society, vol. 94(376), pages 800-811, December.
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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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