This study analyzes food expenditure patterns in South Africa, taking into account
differences in demand behavior across rural and urban households, as well as across
income groups. The analysis is carried out using the QUAIDS model, accounting for
demographic effects, structural change, and seasonality effects. Expenditure endogeneity
is also tested and controlled for. The study makes use of household food consumption
data, collected as part of the KwaZulu-Natal Income Dynamics Study. Demand behavior
differs significantly between rural and urban households, as well as across income
groups, implying that an accurate analysis of expenditure patterns in South Africa
requires a disaggregated analysis that takes into account these differences in demand
behavior.