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Lithuania's food demand during economic transition

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  • Hossain, Ferdaus
  • Jensen, Helen H.

Abstract

The linear approximate version of the almost ideal demand system (LA-AIDS) model is estimated using data from the Lithuanian household budget survey (HBS) covering the period from July 1992 to December 1994. Price and real expenditure elasticities for 12 food groups were estimated based on the estimated coefficients of the model. Very little or nothing is known about the demand parameters of Lithuania and other former socialist countries, so the results are of intrinsic interest. 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 did respond to price and real income changes during their transition to a market-oriented economy.

Suggested Citation

  • Hossain, Ferdaus & Jensen, Helen H., 2000. "Lithuania's food demand during economic transition," ISU General Staff Papers 200006010700001261, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200006010700001261
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    Cited by:

    1. Kielyte, Julda, 2001. "Strukturwandel im baltischen Lebensmittelhandel," IAMO Discussion Papers 33, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
    2. 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.
    3. Braha, Kushtrim & Cupak, Andrej & Qineti, Artan & Pokrivcak, Jan, "undated". "Food Demand System in Transition Economies: Evidence from Kosovo," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272050, European Association of Agricultural Economists.
    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. 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.
    8. 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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