Estimating household demand for cowpea in Nigeria using a two-stage censored food demand system
This study estimates household food demand using a two-stage censored demand system with a focus on cowpea in Nigeria. The analysis is based on a nationally representative household survey data collected by World Bank’s Living Standards Measurement Survey (LSMS) in 2012-13. The first stage estimates household food demand while the second stage consists of estimating a Quadratic Almost Ideal Demand System to examine how food expenditures are allocated across main food groups. The second stage controls for the selection bias that can occur when expenditures are zero and is augmented to include household socio-demographic characteristics. The unconditional expenditure and price elasticities are derived by combining the two stages.