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Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994.

Journal of Development Economics, Elsevier, vol. ' Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range,' ' The effect of income on demand for food in poor countries: Are our food consumption databases giving us reliable estimates?,' ' Units of Measurement and the 'Stone Index' In Demand System Estimation,'ĥ058, Iowa State University, Department of Economics. Fresh meats and rice are mild complements in all models however, fresh fish and rice show the mixed results. Marshallian and Hicksian own-price elasticities for rice are highly elastic for all models. Results from AIDS models show that the expenditure elasticity of rice is positive and close to one. To correct a censored dependent variable problem, we additionally utilize a censored regression approach. For the complete demand system analysis, we apply the almost ideal demand (AIDS) system.

All coefficients have correct signs and are statistically significant. We apply various single equation models: Working-Leser model is estimated by OLS, Heckman's two-step estimator, and Tobit estimator. Food items are non-glutinous rice, bread, noodle, fresh fish, and shellfish, fresh meat, milk, eggs, fresh vegetables, fresh fruits, fats and oil, and food away from home. We use the monthly basis cross-sectional household data, Annual Report on the Family Income and Expenditure Survey (FIES) in 1997. The objective of this research is to analyze the food consumption patterns and to conduct econometric analysis of food demand structure. Our results clearly show that rice in Japan is a normal good contrary to the preceding studies. This study employs the flexible complete demand system for the recent cross-sectional data in Japan. Researchers believe that rice in developed countries such as Japan became an inferior good a few decades ago.

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