Abstract
A complete AIDS (Almost Ideal Demand System) model incorporating habit formation with and without homogeneity imposed on the system is used to analyze the consumption patterns of five food commodity groups-cereals, roots and tubers, milk and dairy products, meat and fish-in the Republic of Cameroon. Changes in real per capita income are shown to have significant effects on budget shares only for meat, fish, milk and dairy products. From expenditure elasticities, meat, milk and dairy products are classified as relative luxuries while fish, cereals, roots and tubers are classified as relative necessities. Fish, cereals, roots and tubers, milk and dairy products are close substitutes to meat but remain complementary to each other. Changing habits significantly affect budget shares for meat, fish and roots and tubers while urban growth leads to an increase in budget shares for all commodity groups. Some policy implications are provided.
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