Food Demand Parameters and Their Application to Nutrition Policy Simulation

Abstract

This paper examines various approaches used for estimating food demand parameters for specific income groups, The study discusses the implications of separability assumptions regarding the consumer’s utility function on the estimation of demand parameters. Demand elasticities for four income groups were estimated using the S-Branch system, the Frisch method, and a double-logarithmic demand function. A partial equilibrium model of the food market which utilizes the income-stratum specific elasticities is then used to simulate the nutritional impact of the adoption of modern rice varieties under different assumptions regarding technical progress and marketable surplus.