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Microeconometric Modeling Of Household Food Demand: The Case Of Transition Bulgaria

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  • Goodwin, Barry K.
  • Phaneuf, Daniel J.

Abstract

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.

Suggested Citation

  • Goodwin, Barry K. & Phaneuf, Daniel J., 2001. "Microeconometric Modeling Of Household Food Demand: The Case Of Transition Bulgaria," 2001 Annual meeting, August 5-8, Chicago, IL 20713, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea01:20713
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    File URL: http://purl.umn.edu/20713
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    References listed on IDEAS

    as
    1. Daniel J. Phaneuf & Catherine L. Kling & Joseph A. Herriges, 2000. "Estimation and Welfare Calculations in a Generalized Corner Solution Model with an Application to Recreation Demand," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 83-92, February.
    2. Balcombe, Kelvin George & Davis, J.R., 1996. "An application of cointegration theory in the estimation of the Almost Ideal Demand system for food consumption in Bulgaria," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 15(1), September.
    3. K. Balcombe & S. Davidova & J. A. Morrison, 1999. "Consumer Behaviour in a Country in Transition with a Strongly Contracting Economy: The Case of Food Consumption in Bulgaria," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(1), pages 36-47.
    4. Lee, Lung-Fei & Pitt, Mark M, 1986. "Microeconometric Demand Systems with Binding Nonnegativity Constraints: The Dual Approach," Econometrica, Econometric Society, vol. 54(5), pages 1237-1242, September.
    5. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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    Cited by:

    1. Ubilava, David & Foster, Kenneth, 2009. "Quality certification vs. product traceability: Consumer preferences for informational attributes of pork in Georgia," Food Policy, Elsevier, vol. 34(3), pages 305-310, June.

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