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A Demand System Analysis of Food for Poor and Non Poor Households. The Case of Argentina

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  • Berges, Miriam E.
  • Casellas, Karina S.

Abstract

The purpose of this paper is to provide some microeconomics tools to discuss and evaluate public policies that imply transfers of income from the public sector to the poor and their impact on their food demand and calories and nutrient intakes. This study is concerned with the differences in subsistence expenditures, own-price elasticities and income elasticities for two households groups segmented by income: those people below the poverty guideline and those above it. The attention of our research is focused on a demand system for all food groups included in a National Consumption Survey and examines the household food consumption behavior by partitioning the sample. A complete system of demand equations, the Linear Expenditure System (LES), has been used due to its relative empirical expediency. Some additional econometric techniques to correct the bias in the parameter estimates were also applied because of the large number of zero observations in the data. Preliminary estimations following the procedure suggested in the Park et al. (1996) paper, gave some results that they were not as good as we expected and we finally use an alternative one based on Shonkwiler and Yen (1999).

Suggested Citation

  • Berges, Miriam E. & Casellas, Karina S., 2002. "A Demand System Analysis of Food for Poor and Non Poor Households. The Case of Argentina," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24815, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae02:24815
    DOI: 10.22004/ag.econ.24815
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    References listed on IDEAS

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    1. J. Scott Shonkwiler & Steven T. Yen, 1999. "Two-Step Estimation of a Censored System of Equations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(4), pages 972-982.
    2. Heien, Dale & Wessells, Cathy Roheim, 1990. "Demand Systems Estimation with Microdata: A Censored Regression Approach," Journal of Business & Economic Statistics, American Statistical Association, vol. 8(3), pages 365-371, July.
    3. Per Pinstrup-Andersen & Elizabeth Caicedo, 1978. "The Potential Impact of Changes in Income Distribution on Food Demand and Human Nutrition," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(3), pages 402-415.
    4. Per Pinstrup-Andersen & Norha Ruiz de Londoño & Edward Hoover, 1976. "The Impact of Increasing Food Supply on Human Nutrition: Implications for Commodity Priorities in Agricultural Research and Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 58(2), pages 133-142.
    5. Rodríguez, Elsa Mirta M. & Berges, Miriam & Casellas, Karina, 2001. "Diferencias regionales en el consumo de alimentos en los hogares argentinos," Nülan. Deposited Documents 482, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    6. John L. Park & Oral Capps, 1997. "Demand for Prepared Meals by U.S. Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 814-824.
    7. Thomas L. Cox & Michael K. Wohlgenant, 1986. "Prices and Quality Effects in Cross-Sectional Demand Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 908-919.
    8. Diansheng Dong & J.S. Shonkwiler & Oral Capps, 1998. "Estimation of Demand Functions Using Cross-Sectional Household Data: The Problem Revisited," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 466-473.
    9. John L. Park & Rodney B. Holcomb & Kellie Curry Raper & Oral Capps, 1996. "A Demand Systems Analysis of Food Commodities by U.S. Households Segmented by Income," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(2), pages 290-300.
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    Cited by:

    1. Lema, Daniel & Brescia, Víctor & Berges, Miriam & Casellas, Karina, 2007. "Econometric estimation of food demand elasticities from household surveys in Argentina, Bolivia and Paraguay," Nülan. Deposited Documents 798, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    2. Echeverría, Lucía & Molina, José Alberto, 2021. "Poor vs Non-Poor Households in Uruguay: Welfare Differences from Food Price Changes," GLO Discussion Paper Series 890, Global Labor Organization (GLO).
    3. Echeverría, Lucía & Berges, Miriam, 2015. "Households' food consumption behavior in Argentina: a quadratic demand system with demographic effects," Nülan. Deposited Documents 2315, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    4. Lema, Daniel & Brescia, Víctor & Berges, Miriam & Casellas, Karina, 2007. "Food demand elasticities in Argentina, Paraguay and Bolivia. Econometric estimation from household surveys," Nülan. Deposited Documents 1114, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    5. Serino, L.A., 2009. "Positive natural resource shocks and domestic adjustments in a semi-industrialized economy: Argentina in the 2004-2007 period," ISS Working Papers - General Series 18709, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.

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    Keywords

    Demand and Price Analysis;

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