Microeconometric Modeling Of Household Food Demand: The Case Of Transition Bulgaria
Considerable optimism has been expressed about the outlook for increased exports of food products to Central and Eastern Europe. A clear understanding of the potential for increased exports to this region requires comprehension of consumers' demands for food products. This analysis resents detailed elasticity estimate for food commodities in transition Bulgaria. The analysis is conducted in two segments. The first considers demand for five aggregate food commodities---cereals, fruits and vegetables, meats, dairy products, other foods (including food consumed away from home and prepared foods), and all other goods. The estimates suggest relatively price inelastic demands. We find that cereals and dairy products tend to be income-inelastic while meats and other foods are income-elastic. We also consider a Kuhn-Tucker model of demand for individual meats. These results indicate that the demands for individual meat products are very price and income elastic.
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