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A demand system analysis of food for poor and non poor households. The case of Argentina

Author

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  • Berges, Miriam
  • Casellas, Karina
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 & Casellas, Karina, 2002. "A demand system analysis of food for poor and non poor households. The case of Argentina," Nülan. Deposited Documents 1019, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    • Handle: RePEc:nmp:nuland:1019
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    File URL: https://nulan.mdp.edu.ar/id/eprint/1019/1/00349.pdf
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    References listed on IDEAS

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    1. Subramanian, Shankar & Deaton, Angus, 1996. "The Demand for Food and Calories," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 133-162, February.
    2. 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.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
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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 1032, 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. 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.
    4. Echeverria, Lucia & Berges, Miriam, 2015. "Households' food consumption behaviour in Argentina: A quadratic demand system with demographic effects," 2015 Conference, August 9-14, 2015, Milan, Italy 211584, International Association of Agricultural Economists.
    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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