Estimation of Household Demand Elasticities for Selected Livestock Products Using the Almost Ideal Demand System (Aids) Model in Delta State, Nigeria

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Journal of Agricultural Sciences (Belgrade), 67(3), 261–275. doi:10.2298/JAS2203261O Olumide, T. A., Adebayo, O. O., & Ogunleye, S. O. (2024). Urban household demand for meat and meat products in Nigeria: An application of the linear approximate almost ideal demand system (LA-AIDS). Nigerian Journal of Agricultural Economics, 16(1), 45–62. WHO. (2020). Healthy diet: Key facts [online]. Geneva, Switzerland. [Last accessed 28 October 2020]. https://www.who.int/news-room/fact-sheets/detail/healthy-diet Table 4.1. Socioeconomic characteristics of household heads Characteristic Category Frequency Percentage (%) Mean Sex Male 114 95.00 Female 6 5.00 Age 21–30 8 6.67 31–45 60 50.00 46–60 52 43.33 43.67 Household size 1–4 13 10.83 5–8 85 70.83 9–11 22 18.33 6.70 Education No formal education 7 5.83 Primary education 12 10.00 Secondary education 59 49.17 Tertiary education 42 35.00 Monthly household income (₦) 10,000–49,000 5 4.17 50,000–99,000 48 40.00 100,000–149,000 45 37.50 150,000–199,000 21 17.50 200,000–249,000 1 0.83 110,125 Marital status Single 21 17.50 Married 99 82.50 Monthly beef consumption frequency 1–15 64 53.33 16–30 30 25.00 31–45 24 20.00 46–60 2 1.67 18.50 Monthly fish consumption frequency 1–15 37 30.83 16–30 70 58.33 31–45 10 8.33 46–60 3 2.50 20.38 Monthly egg consumption frequency 1–15 107 89.17 16–30 13 10.83 9.63 Source: Computed from field survey data, 2024. Table 4.2. Almost Ideal Demand System parameter estimates Variable Beef Fish Egg Chicken Goat meat VARIABLES CONSTANT 0.2456***; (0.0326) 0.1379***; (0.0255) 0.0756*; (0.0408) 0.3875***; (0.0260) 0.1401***; (0.0175) LNPB 0.0583***; (0.0067) -0.0034; (0.0029) 0.0245***; (0.0052) 0.2420***; (0.0035) 0.0018; (0.0034) LNPF -0.0222***; (0.0034) 0.0141***; (0.0040) 0.1144***; (0.0034) 0.0022**; (0.0023) LNPE -0.0067; (0.0092) -0.0748***; (0.0060) 0.0246***; (0.0042) LNPC -0.0695***; (0.0079) 0.0589***; (0.0040) LNPG - 0.0446***; (0.0040) LNEXPD 0.0644***; (0.0076) -0.0306***; (0.0070) -0.0592***; (0.0103) 0.0187**; (0.0077) 0.0227***; (0.0049) LNEXPD2 0.0056***; (0.0004) -0.0029** * ; (0.0005) -0.0043***; (0.0007) 0.0003***; (0.0006) 0.0013***; (0.0003) MARITAL STATUS -0.00047; (0.0062) 0.0017*; (0.0090) -0.0007; (0.0093) 0.0028***; (0.0086) -0.0010**; (0.0005) AGE 0.0001***; (0.0005) -0.000009; (0.0001) -0.0001***; (0.0002) 0.00003; (0.0001) -0.00001; (0.0001) HOUSEHOLD SIZE 0.0005***; (0.0005) 0.00005***; (0.0002) -0.0001**; (0.0002) -0.0008***; (0.0002) -0.0001** * ; (0.0001) OCCUPATION 0.0001; (0.0001) 0.00016***; (0.0005) -0.0010**; ((0.0005 -0.0021; (0.0005) -0.0002***; (0.0003) EDUCATION -0.00005**; (0.0001) 0.00008**; (0.0001) -0.00012***; (0.0001) 0.00010**; (0.0001) -0.00007***; (0.0001) HOUSEHOLD INCOME 0.0582***; (0.0067) -0.0003; (0.0029) 0.0245***; (0.0052) 0.0242***; (0.0035) 0.0018; (0.0034) Source: Computed from field survey data, 2024. Note: ***, ** and * denote significance at 1%, 5% and 10%, respectively; standard errors are in parentheses. Table 4.3. Marshallian and Hicksian price elasticities of demand Product Beef Fish Egg Chicken Goat meat LIVEST OCK PRODU CTS MARSHALLI AN / UNCOMPEN SATED ELASTICITY MARSHALLI AN / UNCOMPEN SATED ELASTICITY MARSHALLI AN / UNCOMPEN SATED ELASTICITY MARSHALLI AN / UNCOMPEN SATED ELASTICITY MARSHALLI AN / UNCOMPEN SATED ELASTICITY BEEF -0.4869 0.1749 0.7171 0.3613 -0.0205 FISH 0.0429 -1.1845 -0.0050 0.0389 0.0113 EGG 0.1432 0.0204 -1.0879 -0.2310 0.0951 CHICKE N 0.0898 0.0467 -0.3214 -1.3146 0.2497 GOATM EAT -0.0348 0.4814 0.3017 0.5708 -1.4437 HICKSIAN / COMPENSAT ED ELASTICITY HICKSIAN / COMPENSAT ED ELASTICITY HICKSIAN / COMPENSAT ED ELASTICITY HICKSIAN / COMPENSAT ED ELASTICITY HICKSIAN / COMPENSAT ED ELASTICITY BEEF -0.4372 0.0289 0.9303 0.5182 0.0501 FISH 0.1262 -0.9920 0.3516 0.3014 0.1293 EGG 0.2168 0.1905 -0.7729 0.0090 0.1994 CHICKE N 0.1650 0.2206 0.0008 -1.0775 0.3563 GOATM EAT 0.0355 0.2106 0.6026 0.7923 -1.3442 Source: Estimates from the AIDS model. Table 4.4. Expenditure elasticities of demand Beef Fish Egg Chicken Goat meat Expenditure elasticity 0.4588 1.4483 0.9912 1.0684 0.9505 Source: Estimates from the AIDS model. EDITORIAL NOTE FOR AUTHORS: The manuscript has been language-edited and internally harmonized. Before journal submission, verify the AIDS/QUAIDS specification and exact elasticity formulae against the estimation software output, because the reported model includes a squared expenditure term (LNEXPD2). The numerical results in Tables 4.2–4.4 were retained rather than recalculated.