To Estimate the Expenditure Elasticity of Demand for Food in Rural and Urban Areas of Latur District

Multistage sampling design was adopted for selection of district, tehsils, villages and households. In first stage, Latur district was selected purposively from Marathwada region of Maharashtra state. In the second stage, Latur, Ausa and Renapur tehsil from Latur district was selected purposively. In third stage, three tehsils headquarters purposively were selected and one village from each tehsil was selected randomly. In fourth stage ten households from headquarters and ten households from villages were selected randomly. Thus, a total of 30 households from urban area and 30 households from rural area were selected. The expenditure elasticities for different food items were derived from the derivatives of the estimates of expenditure functions. The elasticities were estimated as b1-b2/X.