The demand for calories: Some further estimates from Zimbabwe

Abstract

This paper examines the demand for calories in Zimbabwe. The long-run relationship between per capita calorie intake, per capita income and food prices is estimated using cointegration analysis; results indicate that price is insignificant and that feedback (bidirectional causality) exists between calories and income. The ceteris paribus long-run income elasticity of calorie demand is 0.31. Impulse responses show that a shock to calories (income) increases income (calories) permanently and these effects take up to four years to complete. Thus income growth can alleviate inadequate calorie intake, and improvements in nutritional status can increase income thereby supporting the efficiency wages hypothesis.