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Joint determination of food consumption and production in rural Sierra Leone:Estimates of a household-firm model

Authors
Journal
Journal of Development Economics
0304-3878
Publisher
Elsevier
Publication Date
Volume
14
Issue
1
Identifiers
DOI: 10.1016/0304-3878(84)90044-0
Disciplines
  • Economics

Abstract

Abstract This paper investigates the determination of food consumption for rural households in Sierra Leone that produce the foods which they consume. A household—firm model is estimated with seven commodities: including five foods, non-foods and labor, as compared to three commodities in past studies. Such food disaggregation permits tracing of the effects of socioeconomic variables on household nutrient availability. Household specialization in production is such that censored data is a problem. A Tobit approach is used to correct for this. For most crops the own price effects on consumption remain negative when a price change is allowed to shift the budget constraint by effecting the profits from home production. Elasticities of calorie availability with respect to toal expenditure are found to be sizeable, varying little by expenditure group. The price elasticities of calorie availability are generally positive, however an important exception occurs for price of the staple food, rice. This exception has several important policy implications which are explored.

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