Household vegetable demand in the Philippines: Is there an urban‐rural divide?

Abstract

A Nonlinear Quadratic Almost Ideal Demand System (NQAIDS) that accounts for censoring and endogeneity problems is used to assess the vegetable demand behavior of rural and urban households in the Philippines. Detailed household consumption data for a number of vegetable commodities are utilized in the analysis. The results show that most of the expenditure and own-price elasticities of the vegetables analyzed are near or larger than unitary in both rural and urban areas. For majority of the vegetable commodities examined, only the expenditure elasticity is significantly different between rural and urban households. On the other hand, own-price and cross-price elasticities of most vegetables do not significantly differ between rural and urban households. The disaggregate vegetable demand elasticities in this study, as well as the insights from the rural|urban comparisons, provide valuable information that can be utilized for the analysis and design of various food-related policies in the Philippines. [JEL Classification: R21; Q11] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 511-527, 2007.

Complete household demand system of vegetables in Ogun State, Nigeria

“…at 5% level. In general, the estimated expenditure elasticities for the different vegetable commodities are close to unity, which is consistent and within the range of the previous studies (Llanto 1998;Mutuc et al 2007). The Bitter leaf and Eggplant have high but negative expenditure elasticities, which indicates that an increasing income would induce a low consumption of these commodities relative to the other vegetables.…”

“…The existing literature points to several advantages of the NQAIDS over other flexible demand systems: In particular, these include the flexibility to include nonlinearities and interactions with the householdspecific characteristics in the utility function (which can be important for the household survey data) as well as a better forecasting performance (Blundell et al 1993;Lyssiotou et al 2002;Mutuc et al 2007). …”

“…In addition, the majority of Nigeria food demand studies treated "vegetables" as a single aggregate item within a demand system that includes other aggregated food items, like "meat" and "fish" products (Aromolaran 2004;Olarinde and Kuponiyi 2005;Rahji and Adewumi 2008;Akinleye 2009;Obayelu et al 2009;Tsegai and Kormawa 2009). Only similar studies, conducted outside Nigeria, by Belarmino (1983), Quisumbing (1985) and Mutuc et al (2007) used a number of more disaggregate vegetable categories (e.g., green, leafy, and yellow) rather than using a single aggregate "vegetable" category to investigate the food demand behaviour. Deaton and Muellbaucr (1980) are credited with the development of the Almost Ideal Demand System (AIDS) which has been the most commonly used demand system specification during the last 20 years.…”

“…For example, the price and expenditure elasticities of the particular vegetables, like the tomato, cabbage, and eggplants, to mention few, have not been directly examined in Nigeria using a complete demand systems approach. Having precise demand elasticity estimates of vegetables at more disaggregate levels is essential if one is to have a more meaningful analysis of the consumption impacts of the domestic food policy interventions, like the price and income subsidies (Mutuc et al 2007).…”

A Influência Dos Preços Sobre a Demanda Domiciliar Por Frutas E Hortaliças: Uma Análise Por Classes De Renda

“…Diante dos riscos à saúde associados a uma dieta inadequada e a importância do consumo de frutas e hortaliças, alguns estudos internacionais buscaram compreender os principais fatores associados à sua demanda (Feng;Chern, 2000;Mutuc et al, 2007;Caillavet, 2008;Durham E Eales, 2010). Já no Brasil, existem poucas evidências sobre quais fatores são importantes para explicar e estimular seu consumo, concentradas na análise de grupos agregados ou itens básicos sem considerar a importância de alguns alimentos específicos na dieta dos brasileiros Coelho et al, 2010;Barbosa et al, 2010;Lucinda.…”