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Estimation Of Potato Demand Elasticities In Bangladesh

Author

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  • Huq, A.S.M. Anwarul
  • Alam, Shamsul
  • Sabur, S. Abdus

Abstract

The study estimated potato demand elasticities in Bangladesh by using AIDS model with corrected Stone price index. The income elasticity of demand for potato was 0.632. The compensated and uncompensated own price elasticities indicated that all food items were price inelastic. The estimated own price elasticity indicated that if the potato price fell by 10 per cent, demand for potato would increase by 8.82 percent. The estimates of cross price elasticities indicated that the substitution effects of price change were not quite strong. Therefore, government price interventions may not lead to considerable price repercussions in the economy.

Suggested Citation

  • Huq, A.S.M. Anwarul & Alam, Shamsul & Sabur, S. Abdus, 2004. "Estimation Of Potato Demand Elasticities In Bangladesh," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 27(1), pages 1-13, June.
    • Handle: RePEc:ags:bdbjaf:200333
    DOI: 10.22004/ag.econ.200333
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    Cited by:

    1. Awal, M. A. & Sabur, S. Abdus & Mia, M. I. A., 2008. "Estimation Of Vegetable Demand Elasticities In Bangladesh: Application Of Almost Ideal Demand System Model," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 31(1-2), pages 1-26, December.

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    Keywords

    Demand and Price Analysis;

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