| The analysis presented here suggests that low-, middle-, and high-income countries all respond differently to changes in income and food prices and, furthermore that low-income countries are more responsive than high-income countries to such changes. These conclusions are based on a two-stage, cross-country demand system fit to the 1996 International Comparison Project (ICP) data for nine broad categories and eight food sub-categories of goods across 114 countries. The broad consumption groups include: food, beverage, and tobacco; clothing and footwear; education; gross rent, fuel, and power; house furnishings and operations; medical care; recreation; transport and communications; and other items. The food sub-groups include bread and cereals, meat, fish,... |
