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Estimating food demand in Paraguay from household survey data
Author(s) -
Alfonzo Leonardo,
Peterson Hikaru Hanawa
Publication year - 2006
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/j.1574-0864.2006.00122.x
Subject(s) - economics , econometrics , survey data collection , estimation , consumption (sociology) , nonmarket forces , ordinary least squares , agricultural economics , price elasticity of demand , engel curve , quality (philosophy) , food consumption , statistics , mathematics , price index , microeconomics , social science , philosophy , management , epistemology , sociology , factor market
We estimate a food demand system in Paraguay based on the 1997 national household survey, considering 12 food categories. To obtain demand elasticity estimates from household survey data accounting for quality effects, measurement errors, and censored observations, price indexes are obtained from ordinary least squares predictions of changes in unitary values caused by spatial and temporal variations, and the two‐step estimation procedure (Shonkwiler and Yen, 1999) is applied. Our approach yields reasonable estimates of combined quantity and quality responses with respect to price. Results suggest distinct consumption behavior in urban and rural areas, particularly for chicken, eggs, dairy, and fats and oils, which are likely because of differences in the food distribution system and availability of nonmarket food sources.