abstract the analysis presented here suggests that low middle and high income countries all respond differently to changes in food prices furthermore are more responsive than such these conclu sions based on a two stage cross country demand system fit 1996 international comparison project icp data for nine broad categories eight sub of goods across 114 consumption groups include beverage tobacco clothing footwear education gross rent fuel power house furnishings operations medical care recreation transport communications other items bread cereals meat fish dairy products oils fats fruit vegetables beverages exhibit group heteroskedasticity maximum likelihood procedure corrects is developed used estimate model theil s information inaccuracy measures calculated measure goodness equa tions while strobel an individ ual equation basis using estimated parameters price elasticities calcu
