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Description:
This study estimates demand elasticities for staple foods in Brazil taking into account the differences in demand behaviour across urban and rural areas. We analyze microdata from 2002/2003 household expenditure survey (POF), conducted by IBGE. The methodology adopted in demand estimation is based on the Linear Almost Ideal Demand System (LA/AIDS). The results will give us a better understanding of the disparities of the consumption patterns across rural and urban areas in Brazil and provide useful tools in the improvement of public policy related issues.