NDLI: Separability between own food production and consumption in Turkey

Content Provider	Springer Nature Link
Author	Tekgüç, Hasan
Copyright Year	2011
Abstract	Complete markets imply the separation of food production and consumption decisions such that they can be modeled to occur sequentially and can be studied independently. Separation is very often assumed implicitly in empirical studies of food demand. If there is such separation, then food sourced within the household should not have any influence upon the budget share of each food group. Using this insight, this paper first develops a procedure to test for the separation of household food production and consumption decisions. Furthermore, it incorporates the testing procedure into the Almost Ideal Demand Systems model and utilizes survey data from 2003 for Turkey for empirical testing. It concludes that the separation assumption is unwarranted for Turkey. Next, it investigates the extent of bias in elasticity estimates when the separation assumption is unwarranted. It concludes that ignoring the nonseparation of consumption and production decisions in rural areas leads to significant overestimation of food expenditure elasticity for dairy products and eggs and own-price elasticity for bread and cereals.
Starting Page	423
Ending Page	439
Page Count	17
File Format	PDF
ISSN	15695239
Journal	Review of Economics of the Household
Volume Number	10
Issue Number	3
e-ISSN	15737152
Language	English
Publisher	Springer US
Publisher Date	2011-06-15
Publisher Place	Boston
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Agricultural household models Own-produced food consumption Turkey Elasticity estimates Dairy products Social Sciences Population Economics Labor Economics Microeconomics
Content Type	Text
Resource Type	Article
Subject	Social Sciences Economics and Econometrics

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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