MICHIGAN STATE UNIVERSITY. DEPT. OF AGRICULTURAL ECONOMICS
Predicted nutritional effects of economic policies must account for the significant role played by income and price variables in influencing food consumption of rural households.
SMITH, VICTOR E.; STRAUSS, JOHN +1 more · 1970

Abstract
This study, based on data collected during the 1974-75 growing season from 138 households, uses a single-equation least squares regression analysis to study the determinants of food consumption choices in semi-subsistence households in rural Sierra Leone (SL). The regressions represent the combined effects of household production and consumption decisions in response to economic and demographic variables. Two classes of regression are used: quantity equations, which estimate the quantity of food available for consumption; and share equations, which predict the share of total annual expenditure a household devotes to specific foods. Fifty-two variables are examined as determinants of food quantities available to the household -- 2 relate to total household expenditures; 21 are price variables; and 29 describe household characteristics such as size, age, and sex distribution. Analysis reveals that household expenditure or income levels, prices, household size and composition, regional location, and ethnic identity all affect food consumption choices of rural SL households. Whether and what a household produces for the market or for its own use affects consumption. For example, households that produce mostly for themselves consume more palm oil and groundnuts, while households producing for market eat less cassava, sorghum, and other cereals. No such relationship is noted for rice. However, regional and ethnic groupings do reveal significant differences in rice consumption. Positive expenditure elasticities are noted for rice, palm oil, fish, vegetables, and alcoholic beverages; for rice and palm oil, these elasticities generally fall as expenditure levels rise. While food preferences, climate, and soil are major consumption determinants, households also adapt their consumption practices to crop sale and food purchase prices. For example, households, especially those with low incomes, compensate for high rice prices by reducing their consumption of several other foods. An 11-item bibliography (1974-80) and a list of 31 MSU rural development papers are appended.
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