Engel Curves, Spatial Variation in Prices and Demand for Commodities in Côte D'Ivoire

31 Pages Posted: 7 Mar 2011

See all articles by Monnet Gbakou

Monnet Gbakou

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE)

Alfonso Sousa-Poza

University of Hohenheim - Institute of Household and Consumer Economics; IZA Institute of Labor Economics

Abstract

This paper aims to estimate the price and income elasticities of the demand for essential commodities in Cote d'Ivoire. Using data from the 2002 Cote d'Ivoire Living Standard Survey and a theoretical framework developed by Crawford et al. (2003), we analyse price effects on the demand for groups of commodities by exploiting a relationship between unit values and commodity quantities and deriving Engel curves. Our findings reveal that the own-price elasticity of meat and dairy products is considerably stronger for rich households (those in the 90th percentile of total expenditure) than for poor households (those in the 10th percentile of total expenditure). Although all the modelled groups of commodities are normal goods, the paper shows that starch is more of a necessity for poor households than for rich ones, whereas meat and dairy products are more of a luxury good for poor households than for rich households.

Keywords: consumer demand, unit values, developing country

JEL Classification: D11, D12

Suggested Citation

Gbakou, Monnet and Sousa-Poza, Alfonso, Engel Curves, Spatial Variation in Prices and Demand for Commodities in Côte D'Ivoire. IZA Discussion Paper No. 5551, Available at SSRN: https://ssrn.com/abstract=1778895

Monnet Gbakou (Contact Author)

University of Lyon 2 - Groupe d'Analyse et de Théorie Economique (GATE) ( email )

93, chemin des Mouilles
Ecully, 69130
France

Alfonso Sousa-Poza

University of Hohenheim - Institute of Household and Consumer Economics ( email )

Fruwirthstrasse 48
Kavaliershaus 4 116
70599 Stuttgart
Germany
++49 (0)711/459-22863 (Phone)
++49 (0)711/459-23953 (Fax)

HOME PAGE: http://www.uni-hohenheim.de/hhoek/englisch/people/alfonsosousapoza/index.html

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
28
Abstract Views
374
PlumX Metrics