Consumption, Expenditure and Demand Analysis of Milk and Milk Products in India

Subramanian, Raman; Kakkagowder, Chandran; Perumal, Anbukkani; Gurusamy, Parthasarathi

doi:10.5958/2322-0430.2019.00037.4

Cited by 3 publications

(1 citation statement)

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“…In this situation, consumption and labor decisions depend on the household's production and income. The literature offers two approaches for estimating demand: a single equation demand function, which pragmatically considers the observed behavior without explicitly incorporating economic theory, and a complete demand system of equations, which accounts for the mutual interdependence of a large number of commodities in the consumer's budget allocation and captures the consequences of simultaneous changes in variables (Subramanian et al, 2019). The single demand function may not fully satisfy the basic requirements of demand theory; therefore, complete demand systems are applied to estimate consumer preferences, taking into account the mutual interdependence of a large number of commodities subject to budgetary constraints.…”

Section: Consumption Decisionsmentioning

confidence: 99%

Effects of agricultural subsidies on farm household decisions: a separable household model approach

Lal,

Chandel,

Tiwari

et al. 2023

Front. Sustain. Food Syst.

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IntroductionThis study employs a separable household model to estimate the effect of agricultural subsidies on production and consumption decisions taken by farm households. The study used data from a household survey using a pre-tested schedule to develop and calibrate an agricultural household model.MethodFirst, we calculated a price index for the model. The index was higher for non-agricultural commodity groups in all the categories of farm households. Expenditure on non-agricultural commodity groups was more than agricultural commodity groups.Result and DiscussionResults indicated that for the agricultural commodity group, the estimated coefficients of linear expenditure system (LES) model were positive and less than one for all farm household categories except for the wage-price coefficient which was found to be negative. The estimates of profit function in the study area depict that the variable inputs were negatively related to the profit function and the fixed inputs were positively related to profit. Our study highlights a few crucial points – First, the removal of subsidies will decrease the demand for electricity, concentrate and irrigation by 80, 73 and 70 %, respectively. Second, removing subsidies will not only affect the demand for inputs but will also lead to a decline in the consumption demand for both agricultural and non-agricultural commodities. Third, this effect was found to be more prominent in the small and medium categories of farm households.

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Section: Consumption Decisionsmentioning

confidence: 99%