The analysis of consumer demand for food in South Africa using an almost ideal demand system: Some preliminary results

Type Conference Paper - 46th Annual Conference of Australian Agricultural and Resource Economics Society
Title The analysis of consumer demand for food in South Africa using an almost ideal demand system: Some preliminary results
Author(s)
Publication (Day/Month/Year) 2002
URL http://ageconsearch.umn.edu/bitstream/125047/2/Agbola2.pdf
Abstract
This paper examines consumer demand for food in South Africa. An Almost Ideal Demand
System that incorporates socio-economic and demographic factors is specified and estimated
using cross-sectional data of 1993 Integrated Household Survey. By utilising a two-stage
budgeting procedure, a complete food demand system was estimated. The results indicate
that, for food groups (meat and fish, grains, dairy products, fruits, vegetables and other
foods), demand is generally price elastic. Meat and fish, grains and dairy products are luxury
products, while fruits, vegetables and other foods are necessities. For food commodities, the
results indicate that the demand with respect to own-price is generally elastic. The results
suggest that, for an increase in income, food expenditure on meat and fish and grains would
increase while that on dairy products, vegetables and other foods would decrease. The
implications of the empirical results are discussed.

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