Analysis of Substitute Products in the Demand for Food Products in Côte D’Ivoire

Abstract

This study analyzes the demand for staple foods in Côte d’Ivoire and assesses the impact of fluctuations in food prices on household well-being. It focuses on the price- and income elasticities of food demand, as they are useful parameters for measuring households’ reaction to the changes in prices and incomes, and for improving food policies. The study also assesses the loss in well-being arising from food crises with a view to recommending more effective measures for supporting households. It uses an approach that estimates a Quadratic Almost Ideal Demand System (QUAIDS) in order to highlight price and expenditure elasticities. The data used in the study were obtained from the National Household Living Standards Survey (ENV) conducted by the National Institute of Statistics (INS) in 2008. The estimated expenditure- and price elasticities show that the four food clusters under analysis (cereals, root crops and tubers, fruit and vegetables, and animal products) were staple foods that were price inelastic for all the households. A substitutability relationship is observed between cereals, and root crops and tubers. However, animal products and vegetables are found to be complementary to each other and complementary to cereals and root crops and tubers.