Abstract

Household-level micro data were fitted on Linearized Almost Ideal Demand System (LA/AIDS) model to estimate the structure of starchy, animal protein, plant protein and fatty foods demand in Uyo Metropolis of Akwa Ibom State, Nigeria. Panel data used in this study came from four months household food consumption survey. Thirty responding households were randomly selected for the data collection. Estimates of LA/AIDS revealed that the budget shares of different food sub-groups for the sample households responded significantly to changes in the household size, marital status, household’s head education and income levels. Using a system of equations, the estimated expenditure elasticity revealed that starchy and animal protein foods had expenditure elasticity less than zero which implies that, they are “necessity” goods; while plant protein and fat food items were “luxuries”. Also, the estimated own-price elasticity coefficients were negative indicating that as the prices of each food group increase, the relative share of household expenditure decrease accordingly. Cross-price elasticity coefficients for some food groups were negative indicating they are “complementarities”, while others have positive coefficients suggesting they are “substitutes”. Based on findings from this study, recommendations to increase demand for these food groups are made.

Key words: Household, demand, linearized almost ideal demand system (LA/AIDS), Uyo, elasticities.