Religion, food choices, and demand seasonality: Evidence from the Ethiopian milk market E. D'Haene¹; S. Desiere²; M. D'Haese¹; W. Verbeke³; K. Schoors³ 1: Ghent University, Agricultural Economics, Belgium, 2: Leuven University, , Belgium, 3: Ghent University, , Belgium Corresponding author email:
[email protected] Abstract: This paper addresses the role of religious practices on market outcomes. We study the Ethiopian milk market what amounts to a natural experiment influenced by different Christian, Islamic and traditional faiths. Focal point of this article are the fasting rituals characterized by the abstinence of animal products, a fundamental pillar of Orthodox Christianity, the dominant religious group within Ethiopia. Employing country-wide data collected by the Living Standards Measurement Studies, we find, much to our surprise, that the fasting rituals of the Orthodox Christian society adversely affects both milk demand in Orthodox and local Muslim communities alike. The direct effect on Orthodox groups and the spillovers to Muslim networks create important market inefficiencies. The religion-related demand cycles are particularly challenging to government policies that aim to develop the livestock sector. Keywords: Consumer behavior, Collective fasting rituals, Intentional demand seasonality, Livestock sector development and policies, Religion, Market inefficiencies Acknowledegment: JEL Codes: Q11, D12 #2086 Religion, food choices, and demand seasonality: Evidence from the Ethiopian milk market Abstract This paper addresses the role of religious practices on market outcomes. We study the Ethiopian milk market what amounts to a natural experiment influenced by different Christian, Islamic and traditional faiths. Focal point of this article are the fasting rituals characterized by the abstinence of animal products, a fundamental pillar of Orthodox Christianity, the dominant religious group within Ethiopia.