ABSTRACT
An understanding of consumer behavior is important when discussing a wide range of development policy questions. First, better knowledge of consumer behavior might help in the guidance of policy interventions to improve the nutritional status of particular individuals (pregnant women, infants) or households. Second, consumption expenditure parameters are useful for policy analysis in a country’s strategy of food subsidies and taxes in order to minimize the cost and maximize the benefits of such schemes. Third, these consumption expenditure parameters are essential inputs for sectoral and macroeconomic policy simulations through models such as General Equilibrium and multimarket models.
