Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia

Yekin Ahmed Ali

doi:doi:10.11648/j.ijae.20200506.12

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Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia

Yekin Ahmed Ali

Published in International Journal of Agricultural Economics (Volume 5, Issue 6)

Received: 28 September 2020 Accepted: 16 October 2020 Published: 30 October 2020

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Abstract

Demand elasticities are powerful tools to quantify welfare effects of relative price changes concomitant to shocks in economic environment of consumers. This study examined food demand elasticities to demonstrate how rural households in South West Ethiopia react to income and price changes by drawing on 267 observations of Household Income and Consumption Expenditure Survey data collected by Central Statistical Authority. It estimated Quadratic Almost Ideal Demand Systems (QUAIDS) of six groups of food items controlled for censoring and expenditure endogeneity by applying Nonlinear Seemingly Unrelated Regression (NLSUR) technique after incorporating household characteristics into the systems as intercept shifters. The descriptive statistics results showed that households allocate about 55 percent of income to food consumption of which root crops, fruits and vegetables were the dominant. The inferential statistics revealed that household characteristics such as sex, family size, age, education and location significantly influence the consumption patterns, and changes in income and prices would induce adjustment in consumption patterns that manifest by change in the quantities and types of items consumed. The results implicate the need for emphasizing crop specific price policies over holistic approach and policies that target income over policies targeting prices.

Published in	International Journal of Agricultural Economics (Volume 5, Issue 6)
DOI	10.11648/j.ijae.20200506.12
Page(s)	234-242
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

QUAIDS, Expenditure elasticities, Hicksian, Marshallian Price Elasticities

References

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APA Style

Yekin Ahmed Ali. (2020). Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia. International Journal of Agricultural Economics, 5(6), 234-242. https://doi.org/10.11648/j.ijae.20200506.12

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ACS Style

Yekin Ahmed Ali. Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia. Int. J. Agric. Econ. 2020, 5(6), 234-242. doi: 10.11648/j.ijae.20200506.12

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AMA Style

Yekin Ahmed Ali. Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia. Int J Agric Econ. 2020;5(6):234-242. doi: 10.11648/j.ijae.20200506.12

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@article{10.11648/j.ijae.20200506.12,
  author = {Yekin Ahmed Ali},
  title = {Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia},
  journal = {International Journal of Agricultural Economics},
  volume = {5},
  number = {6},
  pages = {234-242},
  doi = {10.11648/j.ijae.20200506.12},
  url = {https://doi.org/10.11648/j.ijae.20200506.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20200506.12},
  abstract = {Demand elasticities are powerful tools to quantify welfare effects of relative price changes concomitant to shocks in economic environment of consumers. This study examined food demand elasticities to demonstrate how rural households in South West Ethiopia react to income and price changes by drawing on 267 observations of Household Income and Consumption Expenditure Survey data collected by Central Statistical Authority. It estimated Quadratic Almost Ideal Demand Systems (QUAIDS) of six groups of food items controlled for censoring and expenditure endogeneity by applying Nonlinear Seemingly Unrelated Regression (NLSUR) technique after incorporating household characteristics into the systems as intercept shifters. The descriptive statistics results showed that households allocate about 55 percent of income to food consumption of which root crops, fruits and vegetables were the dominant. The inferential statistics revealed that household characteristics such as sex, family size, age, education and location significantly influence the consumption patterns, and changes in income and prices would induce adjustment in consumption patterns that manifest by change in the quantities and types of items consumed. The results implicate the need for emphasizing crop specific price policies over holistic approach and policies that target income over policies targeting prices.},
 year = {2020}
}

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TY  - JOUR
T1  - Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia
AU  - Yekin Ahmed Ali
Y1  - 2020/10/30
PY  - 2020
N1  - https://doi.org/10.11648/j.ijae.20200506.12
DO  - 10.11648/j.ijae.20200506.12
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 234
EP  - 242
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20200506.12
AB  - Demand elasticities are powerful tools to quantify welfare effects of relative price changes concomitant to shocks in economic environment of consumers. This study examined food demand elasticities to demonstrate how rural households in South West Ethiopia react to income and price changes by drawing on 267 observations of Household Income and Consumption Expenditure Survey data collected by Central Statistical Authority. It estimated Quadratic Almost Ideal Demand Systems (QUAIDS) of six groups of food items controlled for censoring and expenditure endogeneity by applying Nonlinear Seemingly Unrelated Regression (NLSUR) technique after incorporating household characteristics into the systems as intercept shifters. The descriptive statistics results showed that households allocate about 55 percent of income to food consumption of which root crops, fruits and vegetables were the dominant. The inferential statistics revealed that household characteristics such as sex, family size, age, education and location significantly influence the consumption patterns, and changes in income and prices would induce adjustment in consumption patterns that manifest by change in the quantities and types of items consumed. The results implicate the need for emphasizing crop specific price policies over holistic approach and policies that target income over policies targeting prices.
VL  - 5
IS  - 6
ER  -

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Author Information

Yekin Ahmed Ali

Department of Economics, Kotobe Metropolitan University, Addis Ababa, Ethiopia

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Plain Text BibTeX RIS

APA Style

Yekin Ahmed Ali. (2020). Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia. International Journal of Agricultural Economics, 5(6), 234-242. https://doi.org/10.11648/j.ijae.20200506.12

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ACS Style

Yekin Ahmed Ali. Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia. Int. J. Agric. Econ. 2020, 5(6), 234-242. doi: 10.11648/j.ijae.20200506.12

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AMA Style

Yekin Ahmed Ali. Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia. Int J Agric Econ. 2020;5(6):234-242. doi: 10.11648/j.ijae.20200506.12

Copy | Download

@article{10.11648/j.ijae.20200506.12,
  author = {Yekin Ahmed Ali},
  title = {Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia},
  journal = {International Journal of Agricultural Economics},
  volume = {5},
  number = {6},
  pages = {234-242},
  doi = {10.11648/j.ijae.20200506.12},
  url = {https://doi.org/10.11648/j.ijae.20200506.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20200506.12},
  abstract = {Demand elasticities are powerful tools to quantify welfare effects of relative price changes concomitant to shocks in economic environment of consumers. This study examined food demand elasticities to demonstrate how rural households in South West Ethiopia react to income and price changes by drawing on 267 observations of Household Income and Consumption Expenditure Survey data collected by Central Statistical Authority. It estimated Quadratic Almost Ideal Demand Systems (QUAIDS) of six groups of food items controlled for censoring and expenditure endogeneity by applying Nonlinear Seemingly Unrelated Regression (NLSUR) technique after incorporating household characteristics into the systems as intercept shifters. The descriptive statistics results showed that households allocate about 55 percent of income to food consumption of which root crops, fruits and vegetables were the dominant. The inferential statistics revealed that household characteristics such as sex, family size, age, education and location significantly influence the consumption patterns, and changes in income and prices would induce adjustment in consumption patterns that manifest by change in the quantities and types of items consumed. The results implicate the need for emphasizing crop specific price policies over holistic approach and policies that target income over policies targeting prices.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Food Consumption Patterns and Demand Elasticities for South West Rural Ethiopia
AU  - Yekin Ahmed Ali
Y1  - 2020/10/30
PY  - 2020
N1  - https://doi.org/10.11648/j.ijae.20200506.12
DO  - 10.11648/j.ijae.20200506.12
T2  - International Journal of Agricultural Economics
JF  - International Journal of Agricultural Economics
JO  - International Journal of Agricultural Economics
SP  - 234
EP  - 242
PB  - Science Publishing Group
SN  - 2575-3843
UR  - https://doi.org/10.11648/j.ijae.20200506.12
AB  - Demand elasticities are powerful tools to quantify welfare effects of relative price changes concomitant to shocks in economic environment of consumers. This study examined food demand elasticities to demonstrate how rural households in South West Ethiopia react to income and price changes by drawing on 267 observations of Household Income and Consumption Expenditure Survey data collected by Central Statistical Authority. It estimated Quadratic Almost Ideal Demand Systems (QUAIDS) of six groups of food items controlled for censoring and expenditure endogeneity by applying Nonlinear Seemingly Unrelated Regression (NLSUR) technique after incorporating household characteristics into the systems as intercept shifters. The descriptive statistics results showed that households allocate about 55 percent of income to food consumption of which root crops, fruits and vegetables were the dominant. The inferential statistics revealed that household characteristics such as sex, family size, age, education and location significantly influence the consumption patterns, and changes in income and prices would induce adjustment in consumption patterns that manifest by change in the quantities and types of items consumed. The results implicate the need for emphasizing crop specific price policies over holistic approach and policies that target income over policies targeting prices.
VL  - 5
IS  - 6
ER  -

Copy | Download