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Item Restricted Food demand patterns in thr Philippines in response to price and income changes(2016-06-06) Canaria, Lorenzo UrriquiaAmidst the continuous improvement of the country’s economy, the total share of food in total expenditure for the Philippine household has been increasing, a situation not found in many countries. This rise in food share may largely be affected by the rise in rice expenditure and the retail price of rice. To explore this possibility, we analyze demand patterns through the budgeting process of Philippine households, specifically with respect to food. We investigate the food choices they make and what the change in these choices indicate for the family. Using Family and Income Expenditure Survey data from 1991-2012, and making use of the Almost Ideal Demand System (AIDS) model, we estimate expenditure and price elasticity. This is to shed light on how different income groups within a population consume rice and other food commodities; as well as how changes in incomes and prices affect these decisions. We find that price distortions, together with the current income distribution in the Philippines, directly affects the spending and consumption patterns of households, especially the poor. As for elasticity, rice had an overall expenditure elasticity of 0.53, and uncompensated and compensated own-price elasticity of 0.91 and 1.06, respectively. When divided in urbanity and income quin-tiles, nearly all rice elasticity remained positive. These results show that rice is a strong normal good, and is still consumed in varying amounts regardless of price changes, urbanity, or income quin-tile. The resulting elasticity can immediately be useful in making selection criteria for poverty-targeting programs more accurate and reach the intended groups, as well as providing a clear basis for improvements in rice and food policy.