Consumer Demand for Major Foods in Egypt

Basem Fayaad, Stanley R. Johnson, Mohamed El-Khishin
August 1995  [95-WP 138]

This study provides information on the structure of the consumer demand for major foods in Egypt. The information is in the form of key parameters for consumer demand systems. The modern theory of consumer behavior is the basis for estimating systems of demand equations. These systems yield estimates of own- and cross-price elasticities. The Linear Almost Ideal Demand System (LAIDS) model is applied in estimating a system of demand equations for food commodities. A full demand matrix results with a coherent and consistent set of price and expenditure elasticity estimates. Using the estimated own- and cross-price and expenditure elasticities, food and agricultural policies during the transformation to the market economy can be analyzed. A framework for utilizing the estimated demand parameters in forecasting is also presented.

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