Application of Stochastic Processes to Almost Ideal Demand System (AIDS) Models

Abstract

The world’s worst recorded food disaster happened in 1943, in British-ruled India, and is known as the Bengal Famine. It is estimated that four million people died of hunger that year alone in eastern India (Ganguly, 2002). The reason for the severity of the famine was the hoarding of grains by Indian food traders who would sell goods at high prices in order to obtain large profits. When the British left India in 1947, the number one concern was to ensure that such a famine never happened again. It led to legislative measures that prohibit any person from monopolizing the food markets, and was a major contributor to the green revolution