The demand for staple food in Brazilian urban and rural areas

Abstract

This study estimates demand elasticities for staple foods in Brazil taking into account the differences in demand behaviour across urban and rural areas. We analyze microdata from 2002/2003 household expenditure survey (POF), conducted by IBGE. The methodology adopted in demand estimation is based on the Linear Almost Ideal Demand System (LA/AIDS). The results will give us a better understanding of the disparities of the consumption patterns across rural and urban areas in Brazil and provide useful tools in the improvement of public policy related issues.