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Estimation of a Two-Stage LES-AIDS Consumer Demand System for Eight EC Countries

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Author Info

  • Michalek, J
  • Keyzer, M A

Abstract

This paper discusses specification and an estimation of a two-stage Linear Expenditure System-Almost Ideal Demand System (LES-AIDS) consumer demand system for eight EC countries. The upper level allocates uncommitted expenditure via an AIDS system between food, beverages, and other commodities. The technique used exploits the fact that there are only three AlDS-aggregates to explicitly maintain concavity of the expenditure function within a given range of budget shares; it also ensures consistency of the aggregate price index in the AIDS with the parameters of the system. The lower level allocates food via an LES-system for ten categories, with time-dependent commitments. Empirical results look promising. Copyright 1992 by Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 19 (1992)
Issue (Month): 2 ()
Pages: 137-63

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Handle: RePEc:oup:erevae:v:19:y:1992:i:2:p:137-63

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Cited by:
  1. Madan Mohan Dey & Yolanda T. Garcia & Kumar Praduman & Somying Piumsombun & Muhammad Sirajul Haque & Luping Li & Alias Radam & Athula Senaratne & Nguyen Tri Khiem & Sonny Koeshendrajana, 2008. "Demand for fish in Asia: a cross-country analysis ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), pages 321-338, 09.
  2. Glauben, Thomas & Henning, Christian H.C.A., 2002. "Tax Policies And The Labor Market Constrained Farm Household: Theoretical Results And Empirical Evidence From Household Data," 2002 Annual meeting, July 28-31, Long Beach, CA 19700, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Prof. Dr. Hesse, Klaus & Dr. Hoffmann, Claudia & Dr. Thiele, Silke, 2002. "Änderungen der Struktur der Nachfrage nach Nahrungs-und Genußmitteln privater Haushalte und deren Bedeutung für die Ernährungs- und Agrarwirtschaft Schleswig-Holsteins," FE Working Papers 0302, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
  4. Glauben, Thomas & Henning, Christian H.C.A. & Henningsen, Arne, 2003. "Farm household decisions under various tax policies: Comparative static results and evidence from household data," FE Working Papers 0309, Christian-Albrechts-University of Kiel, Department of Food Economics and Consumption Studies.
  5. Herrmann, Roland & Roeder, Claudia, 1998. "Some neglected issues in food demand analysis: retail-level demand, health information and product quality," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), December.
  6. Balcombe, K. G. & Davis, J. R., 1996. "An application of cointegration theory in the estimation of the almost ideal demand system for food consumption in Bulgaria," Agricultural Economics, Blackwell, vol. 15(1), pages 47-60, September.
  7. Thiele, Silke, 2008. "Elastizitäten der Nachfrage privater Haushalte nach Nahrungsmitteln – Schätzung eines AIDS auf Basis der Einkommens- und Verbrauchsstichprobe 2003," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 57(5).
  8. Friedrich Schneider & Klaus Salhofer & Erwin Schmid & Gerhard Streicher, 2001. "Was the Austrian agricultural policy least cost efficient?," Economics working papers 2001-03, Department of Economics, Johannes Kepler University Linz, Austria.
  9. Moschini, GianCarlo, 2001. "Flexible Multistage Demand System Based on Indirect Separability, A," Staff General Research Papers 1921, Iowa State University, Department of Economics.
  10. Henning, Christian H.C.A. & Henningsen, Arne, 2005. "Modeling Price Response of Farm Households Under Imperfect Labor Markets: A Farm Household Approach to Family Farms in Poland," 94th Seminar, April 9-10, 2005, Ashford, UK 24431, European Association of Agricultural Economists.
  11. Pangaribowo, Evita Hanie & Tsegai, Daniel W., 2011. "Food Demand Analysis of Indonesian Households with Particular Attention to the Poorest," Discussion Papers 116748, University of Bonn, Center for Development Research (ZEF).
  12. Roland Herrmann & Stanley R. Thompson & Stephanie Krischik-Bautz, 2002. "Bovine spongiform encephalopathy and generic promotion of beef: An analysis for “quality from Bavaria”," Agribusiness, John Wiley & Sons, Ltd., vol. 18(3), pages 369-385.
  13. Dey, Madan Mohan & Garcia, Yolanda T. & Kumar, Praduman & Piumsombun, Somying & Haque, Muhammad Sirajul & Li, Luping & Radam, Alias & Senaratne, Athula & Khiem, Nguyen Tri & Koeshendrajana, Sonny, 2008. "Demand for fish in Asia: a cross-country analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(3), September.
  14. Molina Chueca, José Alberto, 1997. "Estimación de la estructura Intertemporal de la demanda de alimentos en España," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 7, pages 67-77, Junio.
  15. Silva, Andres & Garcia, Marian & Bailey, Alastair, 2012. "The Impact of Child Obesity News on Household Food Expenditure in the United Kingdom," 2012 AAEA/EAAE Food Environment Symposium, May 30-31, Boston, MA 123526, Agricultural and Applied Economics Association.
  16. Thiele, Silke, 2001. "Ausgaben- und Preiselastizitäten der Nahrungsmittelnachfrage auf Basis von Querschnittsdaten: Eine Systemschätzung für die Bundesrepublik Deutschland," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 50(2).

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