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Is urban food demand in the Philippines different from China?

Listed author(s):
  • Tomoki Fujii

    ()

    (School of Economics, Singapore Management University, Singapore, 178903)

It is essential to understand the consumption pattern of food and how it changes over time to formulate sound economic policies as well as marketing and pricing strategies. In this study, we estimate the Quadratic Almost Ideal Demand System with six rounds of the Family Income Expenditure Survey exploiting the conditional linearity of the demand system. We find that the Filipino diet has become westernized and that the changes in urban food demand elsticities are qualitatively similar to those in urban China, especially for meat, fruits, and vegetables. We also offer some policy and business implications.

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File URL: https://mercury.smu.edu.sg/rsrchpubupload/24921/18-2014.pdf
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Paper provided by Singapore Management University, School of Economics in its series Working Papers with number 18-2014.

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Length: 24 pages
Date of creation: Oct 2014
Publication status: Published in SMU Economics and Statistics Working Paper Series
Handle: RePEc:siu:wpaper:18-2014
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Web page: http://www.economics.smu.edu.sg/

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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. Vardges Hovhannisyan & Brian W. Gould, 2014. "Structural change in urban Chinese food preferences," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 159-166, March.
  3. Vardges Hovhannisyan & Brian W. Gould, 2011. "Quantifying the structure of food demand in China: An econometric approach," Agricultural Economics, International Association of Agricultural Economists, vol. 42, pages 1-18, November.
  4. 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.
  5. Bouis, Howarth E., 1990. "Evaluating demand for calories for urban and rural populations in the Philippines: Implications for nutrition policy under economic recovery," World Development, Elsevier, vol. 18(2), pages 281-299, February.
  6. Zhihao Zheng & Shida Rastegari Henneberry, 2011. "Household food demand by income category: evidence from household survey data in an urban chinese province," Agribusiness, John Wiley & Sons, Ltd., vol. 27(1), pages 99-113, Winter.
  7. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
  8. Blundell, Richard, 1988. "Consumer Behaviour: Theory and Empirical Evidence--a Survey," Economic Journal, Royal Economic Society, vol. 98(389), pages 16-65, March.
  9. Maria Erlinda M. Mutuc & Suwen Pan & Roderick M. Rejesus, 2007. "Household vegetable demand in the Philippines: Is there an urban-rural divide?," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 511-527.
  10. Fujii, Tomoki, 2013. "Impact of food inflation on poverty in the Philippines," Food Policy, Elsevier, vol. 39(C), pages 13-27.
  11. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-951, July.
  12. Fengxia Dong & Frank Fuller, 2010. "Dietary Structural Change in China's Cities: Empirical Fact or Urban Legend?," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(1), pages 73-91, March.
  13. Awudu Abdulai, 2002. "Household Demand for Food in Switzerland. A Quadratic Almost Ideal Demand System," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 138(I), pages 1-18, March.
  14. Quisumbing, Agnes R. & Valerio, Teresita E. & Red, Evangeline R. & Villavieja, Gracia M., 1988. "Flexible Functional Form Estimates of Philippine Demand Elasticities for Nutrition Policy Simulation," Working Papers WP 1988-13, Philippine Institute for Development Studies.
  15. Zheng, Zhihao & Henneberry, Shida Rastegari, 2010. "The Impact of Changes in Income Distribution on Current and Future Food Demand in Urban China," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 35(1), April.
  16. Muellbauer, John, 1976. "Community Preferences and the Representative Consumer," Econometrica, Econometric Society, vol. 44(5), pages 979-999, September.
  17. Brian W. Gould & Hector J. Villarreal, 2006. "An assessment of the current structure of food demand in urban China," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 1-16, January.
  18. Arsenio M. Balisacan, 1994. "Demand for Food in the Philippines: Responses to Price and Income Changes," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 31(2), pages 137-163, December.
  19. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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