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Lithuania's Food Demand During Economic Transition

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Author Info
Hossain, Ferdaus
Jensen, Helen H.

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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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Publisher 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: 07 Feb 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
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  1. Michael Koetter, 2004. "The Stability of Efficiency Rankings when Risk-Preferences are different," Working Papers 04-08, Utrecht School of Economics. [Downloadable!]
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