Food Demand in Slovenia
The objective of this research is to analyse food consumption patterns in Slovenia for households segmented by quartile income levels and for whole Slovenian population. Food items are divided into seven commodity groups. Cross-sectional household data from Household Budget Survey 2001 were used. We apply the linearly approximated Almost Ideal Demand System (LA/AIDS). Empirical results show positive expenditure elasticities being close to one where in general demands for dairy products and for vegetables have expenditure elasticities higher than unity. All Marshallian and Hicksian own price elasticities are negative and less than one. Demand for meat and fish is quite price inelastic whereas demand for vegetables is pretty sensitive to its own price changes. Results indicate that Slovenia is losing consumption characteristics typical for countries in transition however, some unique food habits persist.
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- Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-56, May.
- Everett B. Peterson & Ronald W. Cotterill, 1998.
"Incorporating Flexible Demand Systems in Empirical Models of Market Power,"
Food Marketing Policy Center Research Reports
043, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
- Peterson, Everett B. & Cotterill, Ronald W., 1998. "Incorporating Flexible Demand Systems in Empirical Models of Market Power," Research Reports 25159, University of Connecticut, Food Marketing Policy Center.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
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