CONSUMER DEMAND FOR MEAT IN KENYA: AN EXAMINATION OF THE LINEAR APPROXIMATE ALMOST IDEAL DEMAND SYSTEM

Per capita consumption of meat products has been rapidly increasing in Sub-Saharan African countries including Kenya. This paper examines a household demand system for five meat products in Kenya: beef with bones, boneless beef, mutton, chicken, and pork. The Linear Approximate Almost Ideal Demand System (LA/AIDS) model is used because of its flexibility and ease of application with household expenditure data. The LA/AIDS model is estimated using household consumption data obtained from Kenya Integrated Household Budget Survey of 2013. Expectedly, the estimates of uncompensated and compensated own price elasticities of demand for all five meat products are negative but larger than –1. Although the estimates of uncompensated cross price elasticities are negative implying that these meat products are gross complements, the estimates of compensated cross price elasticities are found to be positive indicating a quite strong substitution between these meat products. Expenditure elasticities of demand for the meat products are positive implying normal goods. Mutton/goat is a necessity good (elasticity <1) among the Kenyan households.


Issue Date:
2017
Publication Type:
Conference Paper/ Presentation
PURL Identifier:
http://purl.umn.edu/252789




 Record created 2017-04-01, last modified 2017-08-29

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