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Lithuania's Food Demand During Economic Transition

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Abstract

In this study, the linear approximate version of the Almost Ideal Demand System (AIDS) model is estimated using data from the Lithuanian household budget survey covering the period from July 1992 to December 1994. Based on the estimated coefficients of the model, Hossain and Jensen estimated price and real expenditure elasticities for 12 food groups. Estimated expenditure elasticities were positive and statistically significant for all food groups while all own-price elasticities were negative and statistically significant, except for that of eggs which was insignificant. Results suggest that Lithuanian household consumption responded to price and real income changes during the transition to a market-oriented economy.

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Paper provided by Center for Agricultural and Rural Development (CARD) at Iowa State University in its series Center for Agricultural and Rural Development (CARD) Publications with number 00-wp236.

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Date of creation: Jan 2000
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Handle: RePEc:ias:cpaper:00-wp236

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  1. Peter K Cornelius, 1995. "Cash Benefits and Poverty Alleviation in an Economy in Transition: The Case of Lithuania," Comparative Economic Studies, Palgrave Macmillan, vol. 37(2), pages 49-69, July.
  2. Alicia L. Carriquiry & F. Jay Breidt & P. G. Lakshminarayan, 1997. "Sampling Schemes for Policy Analyses Using Computer Simulation Experiments," Center for Agricultural and Rural Development (CARD) Publications 97-wp184, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  3. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521433297.
  4. Tigran A. Melkonian & Stanley R. Johnson, 1998. "State Trading Companies, Time Inconsistency, Imperfect Enforceability and Reputation," Center for Agricultural and Rural Development (CARD) Publications 98-wp192, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  5. Tigran A. Melkonian & Stanley R. Johnson, 1998. "State Trading Companies, Time Inconsistency, Imperfect Enforceability and Reputation," Food and Agricultural Policy Research Institute (FAPRI) Publications 98-wp192, Food and Agricultural Policy Research Institute (FAPRI) at Iowa State University.
  6. David A. Hennessy & Bruce A. Babcock & Dermot J. Hayes, 1997. "Budgetary and Producer Welfare Effects of Revenue Insurance, The," Center for Agricultural and Rural Development (CARD) Publications 97-wp180, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  7. Bruce A. Babcock & Gregory R. Pautsch, 1997. "Moving from Uniform to Variable Fertilizer Rates on Iowa Corn: Effects on Rates and Returns," Center for Agricultural and Rural Development (CARD) Publications 97-wp182, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  8. Jensen, Helen H. & Unnevehr, Laurian J. & Gomez, Miguel I., 1998. "Costs of Improving Food Safety in the Meat Sector (The)," Staff General Research Papers 1156, Iowa State University, Department of Economics.
  9. Jean D. Opsomer & D. Ruppert & M. P. Wand & U. Holst & O. Hussjer, 1998. "Kriging With Nonparametric Variance Function Estimation," Center for Agricultural and Rural Development (CARD) Publications 98-wp188, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  10. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  11. Moschini, GianCarlo, 1995. "Units of Measurement and the 'Stone Index' In Demand System Estimation," Staff General Research Papers 5058, Iowa State University, Department of Economics.
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Cited by:
  1. Johan Lundberg & Sofia Lundberg, 2012. "Distributional Effects of Lower Food Prices in a Rich Country," Journal of Consumer Policy, Springer, vol. 35(3), pages 373-391, September.
  2. Huffman, Sonya K. & Rizov, Marian, 2007. "Determinants of obesity in transition economies: The case of Russia," Economics & Human Biology, Elsevier, vol. 5(3), pages 379-391, December.
  3. Meyers, William H. & Kazlauskiene, Natalija & Krisciukaitiene, Irena, 2005. "Prospects and Challenges in Lithuanian Agricultural Markets After EU Accession," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24602, European Association of Agricultural Economists.
  4. Rask, Kolleen J. & Rask, Norman, 2011. "Economic development and food production-consumption balance: A growing global challenge," Food Policy, Elsevier, vol. 36(2), pages 186-196, April.
  5. Kielyte, Julda, 2001. "Strukturwandel im baltischen Lebensmittelhandel," IAMO Discussion Papers 33, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  6. M. Koetter, 2004. "The stability of efficiency rankings when risk-preference are different," Working Papers 04-08, Utrecht School of Economics.
  7. Bakhshoodeh, M., 2010. "Impacts of world prices transmission to domestic rice markets in rural Iran," Food Policy, Elsevier, vol. 35(1), pages 12-19, February.

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