Almost Ideal Demand System (almost + ideal_demand_system)

Distribution by Scientific Domains

Selected Abstracts

Consumer Welfare and the Loss Induced by Withholding Information: The Case of BSE in Italy

Mario Mazzocchi
The paper develops a measure of consumer welfare losses associated with withholding information about a possible link between BSE and vCJD. The Cost of Ignorance (COI) is measured by comparing the utility of the informed choice with the utility of the uninformed choice, under conditions of improved information. Unlike previous work that is largely based on a single equation demand model, the measure is obtained retrieving a cost function from a dynamic Almost Ideal Demand System. The estimated perceived loss for Italian consumers due to delayed information ranges from 12 percent to 54 percent of total meat expenditure, depending on the month assumed to embody correct beliefs about the safety level of beef. [source]

Analysis of the demand for imported meat in Switzerland using a dynamic specification: Implications for the European Union

Shiferaw T. Feleke
The study identifies the long-run equilibrium (steady-state) relationship of the demand for imported meat in Switzerland and the speed of adjustment of the short-run demand using the Error Correction Linear Approximate Almost Ideal Demand System (EC-LA/AIDS). Results indicate that imports of meat into Switzerland have a long-run equilibrium relationship with price and real expenditure. The study also finds that the demand for pork is price elastic, while the demand for beef, chicken, and mutton is price inelastic. Results will have important implications for the EU meat industry to adjust its export supply in response to changes in prices resulting from the bilateral trade agreements in which Switzerland is expected to reduce or abolish nontariff barriers, further open its market, and reduce or abolish all duties and export subsidies. [EconLit citations: Q110, Q130, Q170 2007 Wiley Periodicals, Inc. Agribusiness 23: 497,510, 2007. [source]

Household vegetable demand in the Philippines: Is there an urban-rural divide?

Maria Erlinda M. Mutuc
A Nonlinear Quadratic Almost Ideal Demand System (NQAIDS) that accounts for censoring and endogeneity problems is used to assess the vegetable demand behavior of rural and urban households in the Philippines. Detailed household consumption data for a number of vegetable commodities are utilized in the analysis. The results show that most of the expenditure and own-price elasticities of the vegetables analyzed are near or larger than unitary in both rural and urban areas. For majority of the vegetable commodities examined, only the expenditure elasticity is significantly different between rural and urban households. On the other hand, own-price and cross-price elasticities of most vegetables do not significantly differ between rural and urban households. The disaggregate vegetable demand elasticities in this study, as well as the insights from the rural/urban comparisons, provide valuable information that can be utilized for the analysis and design of various food-related policies in the Philippines. [JEL Classification: R21; Q11] 2007 Wiley Periodicals, Inc. Agribusiness 23: 511,527, 2007. [source]

Food consumption and demographics in Japan: Implications for an aging population

Mauricio V.L. Bittencourt
This study estimates a cross-sectional model based on the Almost Ideal Demand System (AIDS) to examine the determinants of food consumption patterns in Japan over life-cycle periods. The test of structural changes, the analysis of the effects of demographic characteristics, and the estimation of expenditure and price elasticities are conducted from a random sample of 1,281 households from a Japanese household survey in 1997. Results show that each economic or noneconomic factor has a different impact on food consumption over a lifetime. Changes in consumption of some food groups can be explained by price and income effects where others can be explained by demographic characteristics. Financial constraint is not binding and residential location is likely to have little or no impact on predicting consumers' food choices at different periods of their lives. Other key factors that affect consumption pattern include family size, number of children, lifestyle, and health concern. [EconLit citations: C310, D120, D910.] 2007 Wiley Periodicals, Inc. Agribusiness 23: 529,551, 2007. [source]

Analyses of consumers' dietary behavior: An application of the AIDS model to supermarket scanner data

Eugene Jones
Nationwide food consumption surveys often find no difference in the diets of lower and higher income Americans, while studies of particular food commodities find major differences. These contrasting results represent a consumption paradox. We attempt to gain an understanding of this paradox by using supermarket scanner data to examine food purchases and, by extension, consumption patterns for consumers in two, geographically distinct, income areas. These areas are part of the larger Columbus, OH, metropolitan area (CMA) and six stores are selected for purchase and consumption analyses,three from the lowest income areas of the CMA and three from the highest income areas. Seven product categories are analyzed in this study and these categories are subdivided into meaningful nutritional classes. An Almost Ideal Demand System is employed and the empirical results reveal major differences in consumption behavior for the two groups. [EconLit citations: D120 and D190.] 2003 Wiley Periodicals, Inc. Agribusiness 19: 203,221, 2003. [source]

An error corrected almost ideal demand system for major cereals in Kenya

Jonathan M. Nzuma
Error correction model; AIDS; Cereal consumption; Kenya Abstract Despite significant progress in theory and empirical methods, the analysis of food consumption patterns in developing countries, particularly those in Sub-Saharan Africa (SSA), has received very limited attention. An attempt is made in this article to estimate an Error Corrected Almost Ideal Demand System for four major cereals consumed in Kenya employing annual data from 1963 to 2005. This demand system performs well on both theoretical and empirical grounds. The symmetry and homogeneity conditions are supported by the data and the,Le Chatelier,principle holds. Empirically, all own-price elasticities are negative and significant at 5% level and irrespective of the time horizon, maize, wheat, rice, and sorghum may be considered as necessities in Kenya. While the expenditure elasticities of all four cereals are positive, they are inelastic both in the short run and in the long run. Finally, wheat and rice complement maize consumption in Kenya while sorghum acts as a substitute. Since cereal consumers have price and income inelastic responses, a combination of income and price-oriented policies could improve cereal consumption in Kenya. [source]

An assessment of the current structure of food demand in urban China

Brian W. Gould
China; Food demand system; QUAIDS; Fractional logit Abstract We evaluate the current structure of food demand in urban China by using household expenditure survey data from five provinces. Two complementary analyses are undertaken. First, an aggregate analysis based on a fractional logit model is used to examine how households allocate food expenditures across the food-at-home (FAH) and food-away-from-home (FAFH) categories. This is followed by a disaggregated analysis of how households allocated their FAH expenditures across 12 commodity categories. A Quadratic Almost Ideal Demand System (QUAIDS) is used. We find evidence of significant food purchase substitution and complementarity. [source]

An error correction almost ideal demand system for meat in Greece

G. Karagiannis
Abstract This paper represents a dynamic specification of the Almost Ideal Demand System (AIDS) based on recent developments on cointegration techniques and error correction models. Based on Greek meat consumption data over the period 1958,1993, it was found that the proposed formulation performs well on both theoretical and statistical grounds, as the theoretical properties of homogeneity and symmetry are supported by the data and the LeChatelier principle holds. Regardless of the time horizon, beef and chicken may be considered as luxuries while mutton-lamb and pork as necessities. In the short-run, beef was found to have price elastic demand, pork an almost unitary elasticity, whereas mutton-lamb, chicken and sausages had inelastic demands; in the long-run, beef, and pork were found to have a demand elasticity greater than one, whereas mutton-lamb, chicken, and sausages still had inelastic demands. All meat items are found to be substitutes to each other except chicken and mutton-lamb, and pork and chicken. [source]