International Income and Price Elasticity Estimates: An Update
- by Yacob Abrehe Zereyesus, Tian Xia, Noé J. Nava, Xianghong Li and Lila Cardell
- 5/6/2025
Overview
Price and income elasticities are key to understanding how changes in prices and income affect food demand. USDA’s International Food Security Assessment and Baseline models rely on price and income elasticity estimates from previous studies. This study derives new elasticities using an Almost Ideal Demand System (AIDS) approach and relies on data from the 2017 International Comparison Program (ICP) of the World Bank. The ICP data, covering 176 economies, is categorized by geographic regions and income groups.
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