AN ANALYSIS OF HOUSEHOLD FOOD EXPENDITURE SYSTEMS IN TANZANIA
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This paper analyzes urban and rural food consumption in Tanzania using the Generalized Translog (GTL) expenditure system. We reject a pooled model in favor of two separate urban and rural models. Results indicate that subsistence consumption has significant effect on food demand in rural areas, but it is less important in urban areas. Hence, ignoring differences between urban and rural regions can lead to incorrect inferences and policy recommendations.