Farm Households’ Demand Response to Escalating Food Prices in Nigeria

Adeyonu, A. G. and Shittu, A. M. and Kehinde, M. O. and Adekunle, C. P. Farm Households’ Demand Response to Escalating Food Prices in Nigeria. JOURNAL OF APPLIED ECONOMICS.

Text 6 Food Demand Response to Escalating Prices.pdf Download (1MB)

Abstract

This study examined food demand response to rising food prices among farm households in Nigeria using the three waves of the General Household Survey (Panel) conducted between 2010 and 2016. Analysis was within the Quadratic Almost Ideal Demand System framework from which price elasticities and compensated and uncompensated expenditure were computed. The results show that higher prices of almost all of the food categories affected their demand by households. Harvest and location dummies as well as household demographic variables were found to influence house�hold food demand. Poor households consumed less of all the food categories compared to their non-poor counterparts. Escalating prices result in a welfare loss of household expenditure on com�modity groups such as rice, wheat, pulses, tuber and other food and non-food items. Overall, 70.1% of the households suffered welfare loss that amounted to an average of 7.52% of the household budget annually.

Actions (login required)

View Item