Premium
Analysis of food demand in Vietnam and short‐term impacts of market shocks on quantity and calorie consumption
Author(s) -
Hoang Hoa K.
Publication year - 2018
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12397
Subject(s) - economics , consumption (sociology) , shock (circulatory) , agricultural economics , calorie , term (time) , consumer expenditure survey , food prices , food security , agriculture , public economics , aggregate expenditure , medicine , social science , physics , quantum mechanics , sociology , endocrinology , ecology , biology
A complete demand system for Vietnam was estimated using household survey data. Results showed that demand for rice with respect to prices and expenditure is relatively inelastic compared to other foods. Demand for food in general tends to be less elastic at higher levels of income and for urban households. In the short term, a market shock such as a 10% decrease in income or a 30% increase in rice prices forces households to spend a larger portion of their expenditure on rice at the expense of other foods. Low‐income households face a higher risk of undernourishment as their daily calorie intake is more negatively affected by the shocks than high‐income households. The results suggest the importance of policies that provide necessary safety net programs for the poor.