Food Demand Elasticities among Urban Households in Thailand
Keywords:
Food demand elasticities, Linear Almost Ideal Demand System, Two-stage budgeting, Censored dataAbstract
Information on demand patterns for food is needed to determine food and agricultural policies. In this study, food demand elasticities are estimated for urban Thailand, based on a survey of 500 households in Bangkok and Chiang Mai. We estimate a Linear Almost Ideal Demand System (LAIDS) for 8 aggregate food items and explicitly account for censored data. As one would expect, the demand for higher-value foods such as fruits, vegetables, meat, fish and seafood rises more with increasing incomes than the demand for staple foods, especially rice.
Likewise, households are more price responsiveness with respect to higher-value foods. These results suggest that economic developments and policies that foster income growth and competition in the farm and agribusiness sector will contribute to better nutrition and a more diverse diet.
References
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33. Schmidt, E., Isvilanonda, S. (2002) Food consumption expenditure structure in Thailand 1998: the case of vegetables. ISHS Acta Horticulturae 655: 99-106
34. Shiptsova, R., L. Goodwin, H., Jr., and B. Holcomb, R. (2004). Household Expenditure Patterns for Carbohydrate Sources in Russia. Journal of Agricultural and Resource Economics 29(2): 296-307.
35. Shonkwiler, J.S. and S.T. Yen. (1999) Two-step estimation of a censored system of equations. American Journal of Agricultural Economics, 81(4): 972-982.
36. Straub, M. 2002. Supply and demand of fruits, vegetables and pulses: A market study in Thailand. Master dissertation, Hohenheim University, Germany.
37. Su, S. B. and Yen, S. T. (2000) A censored system of cigarette and alcohol consumption. Applied Economics, 32, 729-737.
38. Sutthipongpan, A. (2005). An Analysis of Household Behavior on Meat Consumption in Thailand. Master dissertation, Department of Agricultural and Resource Economics, Kasetsart University.
39. Yen, S.T. and B. H. Lin. (2006) A sample selection approach to censored demand systems. American Journal of Agricultural Economics, 88(3): 742-749.
40. Yen, S.T., K. Kan, and S. J. Su. (2002) Household demand for fats and oils: Two-step estimation of a censored demand system. Applied Economics, 34(14): 1799-1806.
41. Zellner, A. (1962) An Efficient Method of Estimating Seemingly Unrelated Regressions and Tests for Aggregation Bias. Journal of the American Statistical Association 57: 348-68.
2. Asatryan, (2003) Data Mining of Market Information to Assess At-home Pork Demand. Ph.D. Dissertation, Texas A&M University
3. Bhadrakom, C. (2008) Economic Analysis of Food at Home and Food Away from Home Consumption of Thai Households in 2004. Master Dissertation, Department of Agricultural and Resource Economics, Kasetsart University.
4. Brosig, S. (2000) A Model of Household Type Specific Food Demand Behavior in Hungary.
5. Buse and Chan (2000) Invariance, price indices and estimation in almost ideal demand systems. Empirical Economics, 25: 519-539.
6. Carpentier, A., Guyomard, H. (2001) Unconditional elasticities in two-stage demand systems: an approximate solution. American Journal of Agricultural Economics 83(1): 222-229.
7. Cox, T. L. and Wohlgenant, M. K. (1986) Prices and Quality Effects in Cross-Sectional Demand Analysis. American Agricultural Economics Association. 908-919.
8. Daroonpate A., et. al. (2005) Domestic Fruit Consumption and Fruit Export of Thailand. Kasetsart University, Bangkok, Thailand.
9. Deaton, A. (1988) Quality, quantity, and spatial variation of price. American Economic Review. 78: 418-429.
10. Deaton, A. and Muellbauer, J. (1980) Economics and Consumer Behavior. Cambridge: Cambridge University Press.
11. Ecker, O. (2008) Economics of Micronutrient Malnutrition: The Demand for Nutrients in Sub-Saharan Africa. Ph.D. Dissertation, Department of Agricultural Economics and Social Sciences in the Tropics and Subtropics. Faculty of Agricultural Sciences, Hohenheim University
12. Edgerton, D. L. (1997). Weak Separability and the Estimation of Elasticities in Multistage Demand Systems. American Journal Agricultural Economics. 79: 62-79.
13. Fan, S., J. Wailes, E., L. Cramer. (1995) Household Demand in Rural China: A Two-Stage LESAIDS Model. American Journal Agricultural Economics. 77: 54-62.
14. Gould, B. W., Cox, T. L. and Perali, F., (1990) The Demand for Fluid Milk Products in the U.S.: A Demand Systems Approach. Western Journal of Agricultural Economics 15(1): 1-12.
15. Green, R. and Alston, J.M. (1990) Elasticities in AIDS models. American Journal Agricultural Economics. 72: 442-445.
16. Haden, K. 1990 The Demand for Cigarettes in Japan. American Journal Agricultural Economics. 446-450.
17. Halcoussis, D. (2005). Understanding Econometrics, South-Western, part of the Thomson Corporation.
18. Isvilanonda, S. and Plangpraphan, J. (1992) Demand and Supply Horticulture in Thailand. Year Ended Supplementary Report. Thailand Development Research Institute.
19. Isvilanonda, S. and Kongrith, W. (2008) Thai Household’s Rice Consumption and Its Demand Elasticity. ASEAN Economic Bulletin. Vol. 25, No. 3, pp. 271-82.
20. Jabarin, A. (2005) Estimation of meat demand system in Jordan: an almost ideal demand system. International Journal of Consumer Studies 29: 232-238.
21. Kaennaku, L. (2005) An Analysis of Fish and Fishery Products Consumption Expenditure of the Thai Households. Master dissertation, Department of Agricultural and Resource Economics, Kasetsart University.
22. Kosulwat, V. (2002) The nutrition and health transition in Thailand. Public Health Nutrition: 5(1A): 183-189
23. Menezes, T. A., Azzoni, C. R. and Silveira, F. G. (2008) Demand elasticities for food products in Brazil: a two-stage budgeting system. Applied economics. 40:2557-2572.
24. Mergenthaler M., Weinberger, K., Qaim, M. (2009) The Food System Transformation in Developing Countries: A Disaggregate Demand Analysis for Fruits and Vegetables in Vietnam. Food Policy (In press).
25. Moschini, G. (1995) Units of Measurement and the Stone Index in Demand System Estimation. American Journal Agricultural Economics. 17: 63-68.
26. Pindyck, R. S. and D. L. Rubinfeld (1981). Econometric Models and Economic Forecasts, McGraw-Hill, Inc.
27. Pittman, (2004) Drivers of Demand, Interrelationships, and Nutritional Impacts Within the Nonalcoholic Beverage Complex. Ph.D. Dissertation, Texas A&M University
28. Piumsombun, S. (2003) Analysis of Demand for Fish Consumed at Home in Thailand. Department of Fisheries (DOF), Thailand. 56: No. 2 March-April 2003.
29. Pollak, R. A. and Wales, T. J. (1980). Comparison of the Quadratic Expenditure System and Translog Demand Systems with Alternative Specifications of Demographic Effects. Econometrica, 48: 595-612.
30. Pollak, R. A. and Wales, T. J. (1981) Demographic Variables in Demand Analysis. Econometrica, 49: 1533-1551.
31. Prasertsung, K. (2004) An Analysis of Food Consumption Expenditure of Thai Households. Master dissertation, Department of Agricultural and Resource Economics, Kasetsart University.
32. Sadoulet, E. and A. d. Janvry (1995). Quantitative Development Policy Analysis, The Johns Hopkins Press Ltd., London.
33. Schmidt, E., Isvilanonda, S. (2002) Food consumption expenditure structure in Thailand 1998: the case of vegetables. ISHS Acta Horticulturae 655: 99-106
34. Shiptsova, R., L. Goodwin, H., Jr., and B. Holcomb, R. (2004). Household Expenditure Patterns for Carbohydrate Sources in Russia. Journal of Agricultural and Resource Economics 29(2): 296-307.
35. Shonkwiler, J.S. and S.T. Yen. (1999) Two-step estimation of a censored system of equations. American Journal of Agricultural Economics, 81(4): 972-982.
36. Straub, M. 2002. Supply and demand of fruits, vegetables and pulses: A market study in Thailand. Master dissertation, Hohenheim University, Germany.
37. Su, S. B. and Yen, S. T. (2000) A censored system of cigarette and alcohol consumption. Applied Economics, 32, 729-737.
38. Sutthipongpan, A. (2005). An Analysis of Household Behavior on Meat Consumption in Thailand. Master dissertation, Department of Agricultural and Resource Economics, Kasetsart University.
39. Yen, S.T. and B. H. Lin. (2006) A sample selection approach to censored demand systems. American Journal of Agricultural Economics, 88(3): 742-749.
40. Yen, S.T., K. Kan, and S. J. Su. (2002) Household demand for fats and oils: Two-step estimation of a censored demand system. Applied Economics, 34(14): 1799-1806.
41. Zellner, A. (1962) An Efficient Method of Estimating Seemingly Unrelated Regressions and Tests for Aggregation Bias. Journal of the American Statistical Association 57: 348-68.
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Published
2018-07-31
How to Cite
Lippe, R. S., Isvilanonda, S., Seebens, H., & Qaim, M. (2018). Food Demand Elasticities among Urban Households in Thailand. Thailand and The World Economy, 28(2), 1–29. Retrieved from https://so05.tci-thaijo.org/index.php/TER/article/view/137355
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