Own-Price and Cross-Price Elasticity of Demand for Chicken, Fish, and Rice in Tumbes Households: Analysis by Socioeconomic Strata
DOI:
https://doi.org/10.57188/rieca.2026.004Keywords:
Food demand; Price elasticity; Socioeconomic strata; Tumbes.Abstract
This study estimates the own-price and cross-price elasticity of demand for chicken, fish, and rice in households in the Tumbes region (Peru), differentiating between socioeconomic strata C/D and E. Using pooled ENAHO 2019-2023 data from the National Institute of Statistics and Informatics (INEI), Ordinary Least Squares models with robust errors (log-log OLS), Tobit models, and quantile regression (Q10-Q90) were applied. The results reveal that the own-price elasticity of chicken is substantially higher in stratum E (-1.38) than in stratum C/D (-0.62), confirming the hypothesis that lower-income households are more price-sensitive. Fish acts as a substitute for chicken in strata C/D and E (cross-price elasticity > 0.30), whereas rice behaves as a complementary good (cross-price elasticity < 0) across all analyzed strata. The policy simulation indicates that a -15% subsidy on the price of chicken would increase consumption by 24.8% in stratum E, making it more effective than a S/.50/month cash transfer, which would increase consumption by 11.1%. These findings have direct implications for the design of food-security policies targeted at vulnerable strata in the region.
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