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In the context of fiscal reform in Costa Rica (value added tax revision), the definition of a new basic tax basket, “canasta básica tributaria” (CBT) in Spanish, incorporating nutritional criteria is underway in the country. In this study, price elasticities of major food categories were analyzed using a Quadratic Almost Ideal Demand System (QUAIDS) model. Data from the 2018 National Survey of Household Income and Expenditures was used (INEC, 2018). Measuring price elasticities is essential because it allows: knowing the extent to which food demand reacts to price changes, anticipating changes in the quantities demanded as a result of fiscal policy changes, measuring potential substitution and complementary effects between food groups, and potential nutritional effects of fiscal policies. As a result, it helps providing recommendations on the content of a CBT with nutritional criteria. Results show that the food categories with the most elastic demand are “Bread and cereals”,

United statesUnited kingdomCosta ricaSri lankaCosta ricanNimanthika lokugeDaniela veronaIngresosy gastosLas finanzasElasticidad precioe ingresoElizondoa estimaciHealth policy technolInstitute of nutrition central americaNational institute of statisticsUnited nations children fundAgrifood economics division