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State-Level Food Demand In India: Some Evidence On Rank-Three Demand Systems

Author

Listed:
  • Ranjan Ray

    (Delhi School of Economics)

  • J.V. Meenakshi

    (Delhi School of Economics)

Abstract

This paper examines the relevance of estimating rank-three demand systems in the context of India. The analysis is based on state-level estimation of higher-order generalisations of two popular demand systems: the Linear Expenditure System and the Almost Ideal Demand System. Our results suggest that while incorporating higher-order income terms in consumer demand estimation is important, it is not always necessary to undertake the additional computational burden imposed by rank-three demand systems. Also highlighted in this paper is the state specificity of demand parameters; regional variations in consumer (food) behaviour should not be ignored.

Suggested Citation

  • Ranjan Ray & J.V. Meenakshi, 1999. "State-Level Food Demand In India: Some Evidence On Rank-Three Demand Systems," Working papers 60, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:60
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    Cited by:

    1. Dsouza, Alwin & Mishra, Ashok K. & Tripathi, Amarnath, 2018. "Improving Diet Quality through Off-Farm Work: Empirical Evidence from India," 2018 Annual Meeting, August 5-7, Washington, D.C. 274494, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Liberalization; Foreign Direct Investment; Granger Causality;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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