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\hypersetup{pdftitle={Price Variability and Consumption Patterns: Implications to Food Security Using Panel Data from Rural Ethiopia},pdfauthor={Abrham Seyoum Tsehay, Siegfried Bauer},pdfsubject={Tropentag 2016: Abstract},pdfkeywords={Food demand, Food security, Rural Ethiopia},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 18-21, 2016, Vienna, Austria}}\\[1ex] \Large{``Solidarity in a competing world ---\\fair use of resources''\\[2ex]}}
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\Large{\textbf{Price Variability and Consumption Patterns: Implications to Food Security Using Panel Data from Rural Ethiopia\footnote{\textbf{Contact Address:} Abrham Seyoum Tsehay, Addis Ababa University, Rural Development, Hailegebreselassie, Addis Ababa, Ethiopia, \mbox{e-mail}: \email{abrhams3@gmail.com}}\\[0.8ex]}}
\normalsize{\textsc{Abrham Seyoum Tsehay$^{1}$, Siegfried Bauer$^{2}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$Addis Ababa University, Rural Development, Ethiopia}}}
\item[]{\small{\textit{$^{2}$Justus-Liebig University Giessen, Inst. of Farm and Agribusiness Management - Project and Regional Planning, Germany}}}
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\index[author]{Tsehay, Abrham Seyoum}
\index[author]{Bauer, Siegfried}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
The earning from agricultural production has been historically low and unpredictable for Ethiopian smallholders. This pressure from prices has somewhat shaped the consumption patterns of households in rural Ethiopia thereby reflecting their strategy to overcome food insecurity. However, achieving food security has been a growing challenge in recent times particularly since 2006 due to macroeconomic imbalances and inflationary pressures. Hence, an understanding of the consumption patterns and parameters is fundamental to predicting the effects of policy changes on households with different characteristics. This paper examines the impacts of different factors including changes in prices and income in influencing the consumption behaviour of households in their rational move to attain food security. Results from Quadratic Almost Ideal Demand System indicated that consumption patterns of households are highly correlated with their welfare status and accounting such linkages in policy making is vital to augment the welfare of smallholders in Ethiopia.The share of food in total households' expenditure is predominant in rural Ethiopia to the twin of 78 percent in 1994. After 15 years, this figure has increased slightly against our expectation that it will certainly fall. Major cereals namely Wheat, Teff, Barley, Sorghum and Maize take a lion of share of about half of the food consumption expenditure in both years. The QUAIDS analysis has shown that rural households in Ethiopia are subjected to a very high level of income and price shocks for most of the food groups compared to other developing countries (even by African standard). These and other results of the research indicate the prevalence of food insecurity in among smallholders in rural Ethiopia.}

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\noindent \textbf{Keywords:} Food demand, Food security, Rural Ethiopia
\index[key]{Food!demand}
\index[key]{Food!security}
\index[key]{Rural!Ethiopia}
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