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India Edible Oil Consumption: A Censored Incomplete Demand Approach

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  • Pan, Suwen
  • Mohanty, Samarendu
  • Welch, Mark

Abstract

A Censored Incomplete Demand System is applied to household expenditures for edible oil in India. The results show that edible peanut oil is still a luxury good in India, whereas expenditure elasticities for other edible oils are relatively low. The food habit, location, education of household heads, and other demographic variables have significant effects on the choice of edible oils.

Suggested Citation

  • Pan, Suwen & Mohanty, Samarendu & Welch, Mark, 2008. "India Edible Oil Consumption: A Censored Incomplete Demand Approach," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(3), pages 821-835, December.
    • Handle: RePEc:cup:jagaec:v:40:y:2008:i:03:p:821-835_00
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    References listed on IDEAS

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    1. Fang, Cheng & Beghin, John C., 2002. "Urban Demand for Edible Oils and Fats in China: Evidence from Household Survey Data," Journal of Comparative Economics, Elsevier, vol. 30(4), pages 732-753, December.
    2. Dhar, Tirtha Pratim & Chavas, Jean-Paul & Gould, Brian W., 2002. "An Empirical Assessment of Endogeneity Issues In Demand Analysis for Differentiated Products," Research Reports 25227, University of Connecticut, Food Marketing Policy Center.
    3. Vincenzo Atella & Martina Menon & Federico Perali, 2003. "Estimation of Unit Values in Cross Sections without Quantity Information and Implications for Demand and Welfare Analysis," CEIS Research Paper 12, Tor Vergata University, CEIS.
    4. LaFrance, Jeffrey T., 1985. "Linear demand functions in theory and practice," Journal of Economic Theory, Elsevier, vol. 37(1), pages 147-166, October.
    5. Federico Perali & Jean-Paul Chavas, 2000. "Estimation of Censored Demand Equations from Large Cross-Section Data," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1022-1037.
    6. Chihwa Kao & Lung-fei Lee & Mark M. Pitt, 2001. "Simulated Maximum Likelihood Estimation of the Linear Expenditure System with Binding Non-Negativity Constraints," Annals of Economics and Finance, Society for AEF, vol. 2(1), pages 215-235, May.
    7. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
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    Cited by:

    1. Sutirtha Bandyopadhyay & Bharat Ramaswami, 2024. "Spillover Effects of Import Competition: Edible Oils in India," Working Papers 131, Ashoka University, Department of Economics.
    2. Birthal, Pratap Singh & Nigam, Shyam N. & Narayanan, A.V. & Kareem, K.A., 2012. "Potential Economic Benefits from Adoption of Improved Drought-tolerant Groundnut in India," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(01), June.
    3. repec:uii:journl:v:4:y:2012:i:2:p:115-126 is not listed on IDEAS
    4. Malaga, Jaime E. & Pan, Suwen & Duch-Carvallo, Teresa, 2010. "Mexican Meat demand Parameters Before and After NAFTA: Evidence from Household Surveys 1992–2004," Journal of Food Distribution Research, Food Distribution Research Society, vol. 41(3), pages 1-9, November.
    5. Muhammad Rizwan Yaseen & Irfan Mehmood & Qasim Ali, 2014. "Comparative analysis of the food and nutrients demand in developing countries: The case of main vegetable products in South Asian countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(12), pages 570-581.
    6. Demirdöğen, Alper & Olhan, Emine & Chavas, Jean-Paul, 2016. "Food vs. fiber: An analysis of agricultural support policy in Turkey," Food Policy, Elsevier, vol. 61(C), pages 1-8.

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    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D1 - Microeconomics - - Household Behavior
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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