The Elasticities of Rice Consumption Demand in Thai Households

Abstract

This paper analyzed income and price elasticities of rice consumption demand by treating rice as a heterogeneity in qualities. Since the rapid economic development in Thailand over the past few decades, the rice consumption behaviour in Thai households have been changed. Rice in general and non-glutinous rice in part icular were found to be inferior good. On the other hand, glutinous rice which largely consumed in the north and northeast and is still a necessity good. Income classes and community development also influenced the Thai households to changes their consumption behavior into a less rice demand. This information is necessary for the projection of rice consumption demand in domesticity and for the adjustment of future rice production and export policies.