AN ESTIMATION OF HOUSEHOLD NUTRIENT ELASTICITIES IN URBAN, RURAL AND ESTATE SECTORS OF SRI LANKA

Abstract

Nutrient elasticities are important indicators for human resource development. The objective of the paper is to estimate nutrient expenditure and nutrient demand elasticities in urban, rural and estate sectors. Micro data were collected from HIES in 2006/07, 2009/10, 2012/13 and 2016. For that Badulla, Kandy, Nuwara-Eliya and Ratnapura districts were selected and samples were gathered from urban 2010, rural 8508, estate 3363 and totally 13881 households. Ten types of main food groups consisting of 112 food items were used to estimate nutrient demand elasticities as well as energy, protein, carbohydrate and fat nutrient expenditure elasticities were estimated. Modified Linear Approximation of Almost Ideal Demand System (MLA AIDS) and Demand Model for Nutrient Availability (DMNA) models were used to estimate results. Iterative Seemingly Unrelated Regression (ISUR) is applied to ensure consistent and efficient estimates. Nutrient expenditure elasticities for energy, protein and carbohydrate are relatively higher in the estate sector. Fewer nutrient elasticities are found in rural sectors. Among the nutrients, protein contains relatively more (0.895) nutrient elasticity in all sectors. Nutrient demand elasticities are price inelastic. Rice, vegetable, meat, fish, egg, coconut and milk food groups are price in-elastic for all types of nutrients in all three sectors. So, for the price inelastic food groups in these sectors, decreasing prices are associated with increases in the consumption of nutrients.