Food demand elasticities in Ethiopia

Tafere, Kibrom; Taffesse, Alemayehu Seyoum; Tamru, Seneshaw; Tefera, Nigussie; Paulos, Zelekawork

Food demand elasticities in Ethiopia

Autores

Tafere, Kibrom

Taffesse, Alemayehu Seyoum

Tamru, Seneshaw

Tefera, Nigussie

Paulos, Zelekawork

Editor

International Food Policy Research Institute
Ethiopian Development Research Institute

Descripción

This study aims to investigate how households have adjusted their demand for various food and non-food items to changes in price and income. The Quadratic Linear Almost Ideal Demand Model (AIDM) was used on the Household Income Consumption Expenditure Survey (HICES) 2004/05 data. The results suggest that Ethiopian households display significant responses to changes in prices and income. In both rural and urban areas the consumption increase of teff, animal products, and non-food items exceeds the proportional income increase, which illustrates the growing importance of these sectors. Price elasticities of demand for cereals are roughly the same in urban and rural areas of the country.