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Analysis of methodological approaches to evaluation of complementary and substitution relationships in consumer demand for food

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  • P. Syrovátka

    (Mendel University of Agriculture and Forestry, Brno, Czech Republic)

  • L. Grega

    (Mendel University of Agriculture and Forestry, Brno, Czech Republic)

Abstract

The article is focused on analysis of methodological approaches usable for the analysis of complementary and substitution relationships in consumer demand for food. Demand on food markets is mostly analysed using coefficients of cross elasticities. These coefficients reflect character and intensity of demand relationships of analysed foodstuffs. Besides this traditional approach, another methodological possibility is presented in the paper. This approach is based on correlation and paired regression analysis. Paired indices of determination and correlation, respectively paired regression parameters, may be also used to solve substitution and complementary relationships between the analysed food commodities. Moreover, this methodological approach can be used for analysis of complementary and substitution relationships between aggregate groups of goods, which is not possible if coefficients of indirect price elasticity of demand are used.

Suggested Citation

  • P. Syrovátka & L. Grega, 2002. "Analysis of methodological approaches to evaluation of complementary and substitution relationships in consumer demand for food," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 48(10), pages 456-462.
    • Handle: RePEc:caa:jnlage:v:48:y:2002:i:10:id:5352-agricecon
    DOI: 10.17221/5352-AGRICECON
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    References listed on IDEAS

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    1. Dale M. Heien, 1982. "The Structure of Food Demand: Interrelatedness and Duality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(2), pages 213-221.
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