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Lithuania's Food Demand During Economic Transition

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Abstract

In this study, the linear approximate version of the Almost Ideal Demand System (AIDS) model is estimated using data from the Lithuanian household budget survey covering the period from July 1992 to December 1994. Based on the estimated coefficients of the model, Hossain and Jensen estimated price and real expenditure elasticities for 12 food groups. Estimated expenditure elasticities were positive and statistically significant for all food groups while all own-price elasticities were negative and statistically significant, except for that of eggs which was insignificant. Results suggest that Lithuanian household consumption responded to price and real income changes during the transition to a market-oriented economy.

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  • Ferdaus Hossain & Helen H. Jensen, 2000. "Lithuania's Food Demand During Economic Transition," Center for Agricultural and Rural Development (CARD) Publications 00-wp236, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  • Handle: RePEc:ias:cpaper:00-wp236
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    4. David A. Hennessy & Bruce A. Babcock & Dermot J. Hayes, 1997. "Budgetary and Producer Welfare Effects of Revenue Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 1024-1034.
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    Cited by:

    1. Bakhshoodeh, M., 2010. "Impacts of world prices transmission to domestic rice markets in rural Iran," Food Policy, Elsevier, vol. 35(1), pages 12-19, February.
    2. Huffman, Sonya K. & Rizov, Marian, 2007. "Determinants of obesity in transition economies: The case of Russia," Economics & Human Biology, Elsevier, vol. 5(3), pages 379-391, December.
    3. Kielyte, Julda, 2001. "Strukturwandel im baltischen Lebensmittelhandel," IAMO Discussion Papers 33, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    4. Johan Lundberg & Sofia Lundberg, 2012. "Distributional Effects of Lower Food Prices in a Rich Country," Journal of Consumer Policy, Springer, vol. 35(3), pages 373-391, September.
    5. M. Koetter, 2004. "The Stability of Efficiency Rankings when Risk-Preference are Different," Working Papers 04-08, Utrecht School of Economics.
    6. Rask, Kolleen J. & Rask, Norman, 2011. "Economic development and food production-consumption balance: A growing global challenge," Food Policy, Elsevier, vol. 36(2), pages 186-196, April.
    7. Meyers, William H. & Kazlauskiene, Natalija & Krisciukaitiene, Irena, 2005. "Prospects and Challenges in Lithuanian Agricultural Markets After EU Accession," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24602, European Association of Agricultural Economists.

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