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Household vegetable demand in the Philippines: Is there an urban-rural divide?

✍ Scribed by Maria Erlinda M. Mutuc; Suwen Pan; Roderick M. Rejesus


Publisher
John Wiley and Sons
Year
2007
Tongue
English
Weight
166 KB
Volume
23
Category
Article
ISSN
0742-4477

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✦ Synopsis


Abstract

A Nonlinear Quadratic Almost Ideal Demand System (NQAIDS) that accounts for censoring and endogeneity problems is used to assess the vegetable demand behavior of rural and urban households in the Philippines. Detailed household consumption data for a number of vegetable commodities are utilized in the analysis. The results show that most of the expenditure and own‐price elasticities of the vegetables analyzed are near or larger than unitary in both rural and urban areas. For majority of the vegetable commodities examined, only the expenditure elasticity is significantly different between rural and urban households. On the other hand, own‐price and cross‐price elasticities of most vegetables do not significantly differ between rural and urban households. The disaggregate vegetable demand elasticities in this study, as well as the insights from the rural/urban comparisons, provide valuable information that can be utilized for the analysis and design of various food‐related policies in the Philippines. [JEL Classification: R21; Q11] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 511–527, 2007.