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Lithuania's Food Demand During Economic Transition

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  • Hossain, Ferdaus
  • Jensen, Helen H.

Abstract

The linear approximate version of the almost ideal demand system (LA-AIDS) model is estimated using data from the Lithuanian household budget survey (HBS) covering the period from July 1992 to December 1994. Price and real expenditure elasticities for 12 food groups were estimated based on the estimated coefficients of the model. Very little or nothing is known about the demand parameters of Lithuania and other former socialist countries, so the results are of intrinsic interest. 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 did respond to price and real income changes during their transition to a market-oriented economy.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 1715.

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Date of creation: 01 Jun 2000
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Publication status: Published in Agricultural Economics, June 2000, vol. 23 no. 1, pp. 31-40
Handle: RePEc:isu:genres:1715

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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  1. Babcock, Bruce A. & Pautsch, Gregory R., 1998. "Moving From Uniform To Variable Fertilizer Rates On Iowa Corn: Effects On Rates And Returns," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(02), December.
  2. David A. Hennessy & Bruce A. Babcock & Dermot J. Hayes, 1995. "Budgetary and Resource Allocation Effects of Revenue Assurance: Summary of Results, The," Center for Agricultural and Rural Development (CARD) Publications 95-bp7, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. Atkinson,Anthony Barnes & Micklewright,John, 1992. "Economic Transformation in Eastern Europe and the Distribution of Income," Cambridge Books, Cambridge University Press, number 9780521433297.
  9. 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.
  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.
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Cited by:
  1. Michael Koetter, 2004. "The Stability of Efficiency Rankings when Risk-Preferences are different," Working Papers 04-08, Utrecht School of Economics.
  2. Huffman, Sonya K. & Rizov, Marian, 2007. "Determinants of Obesity in Transition Economies: The Case of Russia," Staff General Research Papers 12830, Iowa State University, Department of Economics.
  3. Kielyte, Julda, 2001. "Strukturwandel im baltischen Lebensmittelhandel," IAMO Discussion Papers 33, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
  4. 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.

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