An Analysis of Demand for Roots and Tubers in Kenya using the Linear Approximation Almost Ideal Demand System (LA-AIDS)

Patrick Kibet Rono, Shaikh Rahman and Chidmi Benaissa

No 252786, 2017 Annual Meeting, February 4-7, 2017, Mobile, Alabama from Southern Agricultural Economics Association

Abstract: This article examines Kenya’s household demand for major roots and tubers using data obtained from Kenya Integrated Household Survey of 2005-2006. The normalized data is analyzed using the Linear Approximation Almost Ideal Demand System (LA-AIDS) model with symmetry and homogeneity restrictions imposed. Estimated own-price elasticities indicate that the demand for potato, sweet potato, arrow roots, and cooking bananas are elastic while the demand for cassava is price inelastic. Estimated cross-price elasticities suggest that potato and sweet potato, potato and arrow roots, and potato and cooking bananas are substitutes while potato and cassava are compliments. Estimated income elasticities for potatoes and cassava are positive but less than one, thus these are necessity food items in Kenya’s roots and tubers demand system. However, estimated income elasticities for sweet potato, arrow roots, and cooking bananas are all positive and greater than one implying that these are luxury food items for the Kenyan households. Keywords Root and tubers, Linear Approximate Almost Ideal Demand System (LA-AIDS), Marshallian Elasticity, Hickisian Elasticity.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ags:saea17:252786

DOI: 10.22004/ag.econ.252786

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