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Income elasticity of food expenditures of the average Czech household

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  • P. Syrovátka

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

Abstract

The paper was focused on the quantitative research of the income elasticity in the field of the food expenditures within the consumer bundle of the average Czech household between 1995 and 2002. The quantitative analysis of the elasticity was based on the system of the nine one-equation regression models of the demands. Because of the time dimension of the used CZO databases, the partial equations of the demand system were developed in the explicit dynamic form. For the elimination of the price changes in the research of the income-elasticity, the real levels of the expenditures and the incomes were calculated. With respect to instant and easy interpretation of the results, the linear relationships between fixed base coefficients of percent growths of the household incomes and expenditures were used in the developed system of demand models. Thus, the income elasticity was determined by means of the value of b regression parameters. The achieved estimations of the studied income-expenditure elasticity were adjusted, so that Engel aggregation condition was kept. The paper contains the suggestion of the some methodological principles for the coefficient adjusting. The statistical diagnostics was involved in the quantitative part of the elasticity research. There was used the evaluation of determination coefficients, its F-tests, and T-tests of the relevant parameters (b regression parameters).

Suggested Citation

  • P. Syrovátka, 2004. "Income elasticity of food expenditures of the average Czech household," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 50(7), pages 309-316.
    • Handle: RePEc:caa:jnlage:v:50:y:2004:i:7:id:5208-agricecon
    DOI: 10.17221/5208-AGRICECON
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    References listed on IDEAS

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    1. Abigail Tiffin & Richard Tiffin, 1999. "Estimates of Food Demand Elasticities for Great Britain: 1972–1994," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 140-147, January.
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