Analyzing Household Food Demand by Income Category in Rural Thailand: A Dynamic QUAIDS Approach With Implications for Food Security

ABSTRACT This study explores food demand patterns among rural households in Thailand, focusing on how price and income variations influence consumption across income strata. Using data from the 2002 to 2014 Townsend Thai monthly panel survey, the dynamic Quadratic Almost Ideal Demand System model with cointegration was applied to analyze six food categories: rice, starches, and cereal products, fruits and vegetables, meats, eggs, and dairy, oils and sweets, ready‐to‐eat foods, and alcoholic beverages and tobacco. The findings reveal significant income‐based disparities in food consumption. Low‐income households demonstrate lower sensitivity to price changes, particularly for rice, while nonessential goods, such as ready‐to‐eat instant foods and alcoholic beverages, are more income‐elastic. Demographic factors, such as the age and education of household heads, also play critical roles in influencing preferences for essential versus discretionary items. These results underscore the need for targeted fiscal and educational interventions to moderate consumption of alcoholic beverages and tobacco and enhance food security among the rural Thai population. This study also calls for further investigation of the long‐term impacts of economic shocks and policy interventions on household food demand, providing a foundation for effective policymaking aimed at equitable and sustainable development.