Demand analysis for selected roots and tubers among urban households of Nakuru County, Kenya

Abstract

AbstractThis study examines Kenya’s demand for selected roots and tubers (R&Ts). Data used for the analysis were collected from Nakuru Town East Sub-County. A sample unit of 385 urban households was interviewed at the market outlet immediately after purchasing R&Ts. Linear Approximated Almost Ideal Demand System (LA/AIDS) model was used to estimate demand elasticities, demographics and social-economic factors influencing the consumption patterns of R&Ts. Age, education, household size, and proportion of household members statistically and significantly explained the variations in R&Ts consumption patterns. Empirical results showed negative own-price elasticities for uncompensated and compensated demand analyses, therefore in line with utility theory. Cross-price elasticities had positive and negative signs, indicating the presence of substitutes and complements respectively among R&Ts. Expenditure (income) elasticities for R&Ts had mixed signs ranging from elastic to inelastic. Irish potato and sweet potato were inelastic with a positive sign classifying them as necessities goods. Cassava and yam were inelastic with a negative sign indicating they were inferior goods, while arrowroot was positive and elastic, therefore a luxury good. These results are broadly consistent with microeconomic theory; consequently, they could inform the formulation of effective policies and strategies that promote R&Ts consumption thereby contributing to food and nutritional security among households.

Keywords

• Budget shares
• consumer demand
• household consumption
• linear approximated almost ideal demand system
• root and tuber crops