Demand Elasticities for Food Products: a Two-stage Budgeting System

Tatiane x Tatiane A. Menezes, Fernando G. Silveira and Carlos Azzoni

No 9-2005, TD NEREUS from Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS)

Abstract: The object of this paper is to estimate demand elasticities for a basket of staple food important for providing the caloric needs of Brazilian households. These elasticities are useful in the measurement of the impact of structural reforms on poverty. A two-stage demand system was constructed, based on data from Household Expenditure Surveys (POF) produced by IBGE (The Brazilian Bureau of Statistics) in 1987/88, and in 1995/96. We have used panel data to estimate the model, and have calculated income, own-price, and cross-price elasticities for seven groups of goods and services and, in the second stage, for eight sub groups of staple food products. We estimated those elasticities for the whole sample of consumers, and for two income groups. This procedure allowed for the comparison of the results across the groups.

Keywords: Brazil; Demand Elasticity; Two-Stage Budgeting System; Estimating Demand Systems; Poverty; Income Inequality (search for similar items in EconPapers)
JEL-codes: D12 Q11 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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