Skip to main content
padlock icon - secure page this page is secure

Own Price and Income Elasticities of Food in Malaysia

Buy Article:

$106.34 + tax (Refund Policy)

Food consumption in Malaysia has shifted away from starchy staples example rice to move towards wheat and livestock products, seafood, fruits and vegetables when increasing in income. The main objective of this paper is to outline the framework to analyse the elasticities of demand of food in Peninsular Malaysia. This study is adopting cross-sectional household data from the Household Expenditure Survey (HES), conducted by the Department of Statistics, Malaysia. Generally, the expenditure elasticites for most of the all food groups are positive and less than one (0 < ε < 1), except for cereal, fish, milk, vegetable and beverage indicating that food groups are normal and necessary goods, and there are no inferior foods. The uncompensated own-price elasticities for most of the selected food groups are much lower than the total income elasticities. The largest absolute value of uncompensated own-price elasticity is the other food commodity group (−1.117). This implies that demand reacts elastically to changes in prices of other groups commodities while the lowest elasticities is sugar (−0.480) where demand reacts least to price changes.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Keywords: Consumption; Demand; Elasticity; Expenditure; LA/AIDS Model

Document Type: Research Article

Affiliations: 1: Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman, Malaysia 2: Faculty of Economics and Management, Universiti Putra Malaysia, Malaysia

Publication date: April 1, 2017

More about this publication?
  • ADVANCED SCIENCE LETTERS is an international peer-reviewed journal with a very wide-ranging coverage, consolidates research activities in all areas of (1) Physical Sciences, (2) Biological Sciences, (3) Mathematical Sciences, (4) Engineering, (5) Computer and Information Sciences, and (6) Geosciences to publish original short communications, full research papers and timely brief (mini) reviews with authors photo and biography encompassing the basic and applied research and current developments in educational aspects of these scientific areas.
  • Editorial Board
  • Information for Authors
  • Subscribe to this Title
  • Ingenta Connect is not responsible for the content or availability of external websites
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more