In this study AIDS and QUAIDS estimators with the 2010 VHLSS household survey show that rice is a normal good at the national level with an expenditure elasticity being 0.05. In addition, rice is found to be an inferior good for urban consumers and a normal good for rural consumers with expenditure elasticities being -0.18 and 0.14, respectively. Clearly rice is in transition from a normal good to an inferior good in Vietnam. Even for rural consumers at different income levels rice is estimated to be an inferior good for high-income consumers. In addition, robust Wald test and likelihood ratio test statistics verify that QUAIDS performs better than AIDS although both models yield similar results.


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