This study estimates pulse demand system using 2018/19 Ethiopian Socioeconomic Survey (ESS) (forth wave) data from which is a joint project between the Ethiopian Statistical Service(ESS) and the World Bank Living Standards Measurement Study – Integrated Surveys on Agriculture (LSMS-ISA). An Almost Ideal Demand System was estimated, and parameters were used to estimate price and expenditure (income) elasticities for three pulse items (horse bean, lentil and chickpea) separately for rural and urban households. In the analysis, demographic variables (such as age, education and household size) were included to capture rural urban differences in preferences. The results disclose that own price, price of others and location of respondents affect expenditure share of pulses. Income elasticity of lentil was 1.02 which is greater than one, implies lentil is luxury goods to the household while horse bean and chickpea are necessity goods. The empirical review result revealed that uncompensated cross-price elasticity of horse bean with lentil was negative which showed that horse bean was consumed complementary with lentil & Chickpea complementary consumed with lentil too. The result of cross-price elasticity, revealed that compensated cross-price elasticity of horse bean with chickpea and lentil had positive signs, which indicate these goods are substitutes to one another at the estimated mean shares. Household consume horse bean and lentil in substitution to chickpea. Similarly, horse bean and chickpea were found to be substitute to lentil.
Estimation of Pulse Demand in Ethiopia
An Almost Ideal Demand System Modelling Approach
- Wogayehu Abele
- Gregory Mvogo