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Foodgrains Demand Elasticities of Rural Households in Bangladesh— An Analysis of Pooled Cross-Section Data

Wahiduddin Mahmud

 

Abstract

This paper attempts to estimate the foodgrains demand elasticities of rural households in Bangladesh by using pooled cross-section data from several rounds of a family budget survey known in short as the QSCEC. The estimated elasticities are income-class-specific and are based on a demand-theoretic specification of the own-price, cross-price and income elasticities of consumer demand. The estimation of these elasticities can be useful in analysing the effects of changes in foodgrains prices on defferent economic groups and in devising a sound food policy. The statistical results are of particular interest for testing some standard hypotheses regarding consumers’ behaviour at extremely low levels of living such as obtain in rural Bangladesh.

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