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Demand Elasticities for Food Products: a Two-stage Budgeting System

Author

Listed:
  • Tatiane x Tatiane A. Menezes
  • Fernando G. Silveira
  • Carlos R. Azzoni

    (Departamento de Economia, Universidade de São Paulo)

Abstract

The object of this paper is to estimate demand elasticities for a basket of staple food important for providing the caloric needs of Brazilian households. These elasticities are useful in the measurement of the impact of structural reforms on poverty. A two-stage demand system was constructed, based on data from Household Expenditure Surveys (POF) produced by IBGE (The Brazilian Bureau of Statistics) in 1987/88, and in 1995/96. We have used panel data to estimate the model, and have calculated income, own-price, and cross-price elasticities for seven groups of goods and services and, in the second stage, for eight sub groups of staple food products. We estimated those elasticities for the whole sample of consumers, and for two income groups. This procedure allowed for the comparison of the results across the groups.

Suggested Citation

  • Tatiane x Tatiane A. Menezes & Fernando G. Silveira & Carlos R. Azzoni, 2005. "Demand Elasticities for Food Products: a Two-stage Budgeting System," TD NEREUS 9-2005, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    • Handle: RePEc:ris:nereus:2005_009
    as

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    References listed on IDEAS

    as
    1. Tatiane Menezes & Fernando Gaiger Silveira & Luís Carlos G. Magalhães & Bernardo P. Campolina Diniz, 2003. "Elasticidade Renda dos Produtos Alimentares no Brasil e Regiões Metropolitanas: uma Aplicação dos Micro-Dados da POF 1995/96," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31st Brazilian Economics Meeting] e43, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. BARTEN, Anton P., 1977. "The systems of consumer demand functions approach: A review," LIDAM Reprints CORE 284, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Saroja Selvanathan & E. A. Selvanathan, 2005. "Is utility additive? Further evidence," Applied Economics, Taylor & Francis Journals, vol. 37(1), pages 83-86.
    4. David L. Edgerton, 1997. "Weak Separability and the Estimation of Elasticities in Multistage Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 62-79.
    5. Michalek, J & Keyzer, M A, 1992. "Estimation of a Two-Stage LES-AIDS Consumer Demand System for Eight EC Countries," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 19(2), pages 137-163.
    6. Barten, Anton P, 1977. "The Systems of Consumer Demand Functions Approach: A Review," Econometrica, Econometric Society, vol. 45(1), pages 23-51, January.
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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