Food Demand Elasticities among Urban Households in Thailand

Information on demand patterns for food is needed to determine food and agricultural policies. In this study, food demand elasticities are estimated for urban Thailand, based on a survey of 500 households in Bangkok and Chiang Mai. We estimate a Linear Almost Ideal Demand System (LAIDS) for 8 aggregate food items and explicitly account for censored data. As one would expect, the demand for higher-value foods such as fruits, vegetables, meat, fish and seafood rises more with increasing incomes than the demand for staple foods, especially rice. Likewise, households are more price responsiveness with respect to higher-value foods. These results suggest that economic developments and policies that foster income growth and