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Estimating Consumer Preferences for Food, Using Time Series Data of Pakistan

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  • Abid A. Burki

    (=Department of Economics, Quaid-i-Azam University, Islamabad.)

Abstract

Consumer preferences for food and non-food items in Pakistan are frequently estimated by using data from the household surveys. However, structural change in consumer preferences, caused by changes in tastes, can be studied by using the annual time series data, a time series of cross sections, or the panel data. This paper uses Pakistan’s annual time series disappearance data for eight food commodities from 1972 to 1991 to study consumer behaviour. The existence and the nature of structural change is tested by using both the generalised axiom of revealed preference (GARP) and the first-difference LA/AIDS model. It turns out that GARP tests are low-powered as tests of structural change on our data-set. However, the results from the LA/AIDS model show a shift in consumer demand from gram (split) to chicken after 1982. The data set satisfies symmetry and homogeneity. The estimates of price and income elasticities are also consistent with economic theory. The implications of these results for policy are also discussed.

Suggested Citation

  • Abid A. Burki, 1997. "Estimating Consumer Preferences for Food, Using Time Series Data of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(2), pages 131-153.
    • Handle: RePEc:pid:journl:v:36:y:1997:i:2:p:131-153
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    References listed on IDEAS

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    Cited by:

    1. Aziz, Babar & Malik, Shahnawaz, 2006. "Surmising Consumer Demand System & Structural Changes Using Time Series Data," MPRA Paper 22911, University Library of Munich, Germany, revised 2006.
    2. Naveed Hayat & Anwar Hussain & Hazrat Yousaf, 2016. "Food Demand in Pakistan," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 17(1), pages 94-113, March.
    3. Lal Almas & Mehreen Zaid Ullah & Hina Fatima & Lal K. Almas & Mallory K. Vesta & Nasim Akhter, 2017. "Estimating Demand Elasticities for Aggregate Food Groups using QUAIDS and Pooled HIES Data," EcoMod2017 10541, EcoMod.
    4. Eatzaz Ahmad & Muhammad Arshad, 2007. "Household Budget Analysis for Pakistan under Varying the Parameter Approach," Microeconomics Working Papers 22180, East Asian Bureau of Economic Research.
    5. Lubna Naz & Munir Ahmad & G.M Arif, 2018. "Estimating Food Demand System and Rural Household Welfare: A Case study from Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(4), pages 55-82, December.
    6. Abid A. Burki & Mushtaq A. Khan & Sobia Malik, 2015. "From Chronic Disease to Food Poverty: Evidence from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(1), pages 17-33.
    7. AHMED, Eatzat & JALIL, Abdul & IDREES, Muhammad, 2013. "Almost Ideal Demand System And Uniform Taxation In Pakistan: Econometric Evidences For Consumer Goods In Pakistan, 1984-2008," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(2), pages 207-216.
    8. Adeeba Ishaq & Mahmood Khalid & Eatzaz Ahmad, 2018. "Food Insecurity in Pakistan: A RegionWise Analysis of Trends," PIDE-Working Papers 2018:157, Pakistan Institute of Development Economics.
    9. Sohail Jehangir Malik & Hina Nazli & Edward Whitney, 2015. "Food Consumption Patterns and Implications for Poverty Reduction in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 651-670.
    10. Aziz, Babar & Shahnawaz, Malik, 2005. "Demand for Meat; Seprability and Structural changes (A Nonparametric Analysis)," MPRA Paper 22932, University Library of Munich, Germany, revised 2005.

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