An Error Corrected Almost Ideal Demand System for Major Cereals in Kenya

Despite significant progress in theory and empirical methods, the analysis of food consumption patterns in developing countries, particularly those in Sub Saharan Africa has received very limited attention. An attempt is made in this article to estimate an Error Corrected Almost Ideal Demand System for four major cereals consumed in Kenya employing annual data from 1963 to 2005. The model performs well both on theoretical and empirical grounds. All own-price elasticities are negative and statistically significant and all cereals are necessities both in the short-run and in the long-run in Kenya.