Using Income Classes to Estimate Consumption Parameters for Food Policy Analysis

Jacinto F. Fabiosa, Samarendu Mohanty, Darnell B. Smith, William H. Meyers
June 1996  [96-WP 159]

How can economists estimate consumption parameters by income classes? The approach used in this paper combines price elasticities estimated from aggregated market data and income-class-specific elasticities derived from household expenditure surveys using Slutsky relationships to calculate income-class-specific price elasticities. The approach was applied to estimate income-class-specific price elasticities for major agricultural commodities consumed in Jamaica.

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