Public Distribution System vs. Market: Analysis of Staple Food Consumption in India Using QUAIDS with Rationing
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The current study explains the impact of the Targeted Public Distribution System (TPDS) in India on total staple food consumption. The study is based on the 68th round of the National Sample Survey of Household Consumer Expenditure.
First, we show that under-purchase from TPDS is due to the supply constraints. Next, we estimate a three-stage demand system for staple foods. In the third stage, we estimate a Quadratic Almost Ideal Demad System with Rationing, where the TPDS grains are treated as strictly rationed goods and the rest of the consumption goods in the system are the market consumed staples.