Food Consumption Patterns and Demand Elasticities in South West Ethiopia

Yekin Ahmed Ali

Abstract


 

The study investigates how consumers react to income and food price changes by applying QUAIDS on HICE survey data collected by CSA. Demographic variables are incorporated into the model as intercept shifters by linear demographic translation method. Corrections for censoring and expenditure endogeneity were made. By using descriptive statistics, it describes the consumption patterns and food expenditure share in South West Ethiopia namely Bench Maji, Kaffa and Sheka zones. The results have important policy implications. The households spend about 56 percent of income on food purchase such as root crops, fruits and vegetables and cereals.  Size, sex, age, literacy, season and location significantly influence the consumption patterns thereby justifying their importance in demand analysis. The expenditure, Marshallian and Hicksian elasticities provide evidences supporting effectiveness of income policies over the alternative policies targeting prices.

Key Words: Consumption patterns, elasticity, QUAIDS, South west Ethiopia


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ISSN : 2251-1555