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Ideal Demand System (ideal + demand_system)
Kinds of Ideal Demand System Selected AbstractsConsumer Welfare and the Loss Induced by Withholding Information: The Case of BSE in ItalyJOURNAL OF AGRICULTURAL ECONOMICS, Issue 1 2004Mario 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 UnionAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2007Shiferaw 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?AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2007Maria 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 populationAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2007Mauricio 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 dataAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 2 2003Eugene 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 KenyaAGRICULTURAL ECONOMICS, Issue 1 2010Jonathan 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 ChinaAGRICULTURAL ECONOMICS, Issue 1 2006Brian 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 GreeceAGRICULTURAL ECONOMICS, Issue 1 2000G. 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] Decomposing Preference Shifts for Meat and Fish in the NetherlandsJOURNAL OF AGRICULTURAL ECONOMICS, Issue 2 2001M.-J.J. Mangen The changing preferences of Dutch consumers for meat and fish are investigated using a switching almost ideal demand system. Structural change in demand between January 1994 and May 1998 is decomposed into underlying trends, temporarily irreversible preference shifts triggered by the BSE crisis of March 1996, and a "panic" reaction against beef in the month of the crisis itself. Preference shifts due to the BSE scare reduced expenditure shares for beef, minced meat and meat products by 2.5, 3.3 and 7.9 percentage points respectively. There were offsetting gains in the shares of pork, prepared meat and fish. Taking underlying trends also into account, changing preferences over the whole period reduced beefs share by 4.9 percentage points and increased those of poultry, prepared meat and fish by 4.1, 4.9 and 5.2 percentage points respectively. [source] Potato demand in an increasingly organic marketplace,AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 3 2009Ming-Feng Hsieh The authors investigate pricing and demand issues for four fresh potato categories (russet, red, white, and minor colored), organic fresh potatoes, and two processed potato categories (frozen/refrigerated and dehydrated) using a nonlinear generalized almost ideal demand system (GAIDS) that is closed under unit scaling (CUUS). The model used regionally aggregated at-home consumption data from 2000 to 2005. Estimated uncompensated own price elasticities for fresh potatoes were highly significant and ranged between ,0.5 and ,1.6. The study was designed to capture the effects of the aggregate organic market on the prices, expenditures, and demand for each potato category. Organic food market penetration elasticities suggest that specialty potatoes (organic and minor-colored) are particularly well positioned if demands for organic products continue to rise, red potatoes are not well positioned and evidence of the early warning signs of slippage in market share for white and russet potatoes may exist. Producers and promoters of conventional potato products should account for the increasingly important role of organic products in making decisions. As an auxiliary exercise, we also statistically sourced the variance of the organic potato price premium relative to the other four fresh potato prices. At the present time, the variability of the organic potato premium is not much affected by production costs or other supply-related factors: the premium variability was driven largely by demand, and demographic/seasonal factors. Producers should be cautious about shifting to organic potato production until lower cost practices emerge. [JEL Codes: D120, Q130, Q180]. © 2009 Wiley Periodicals, Inc. [source] An error corrected almost ideal demand system for major cereals in KenyaAGRICULTURAL ECONOMICS, Issue 1 2010Jonathan 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] Lithuania's food demand during economic transitionAGRICULTURAL ECONOMICS, Issue 1 2000Ferdaus Hossain 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. [source] An error correction almost ideal demand system for meat in GreeceAGRICULTURAL ECONOMICS, Issue 1 2000G. 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] Demand for Domestic and Imported Table Wine in British Columbia: A Source-differentiated Almost Ideal Demand System ApproachCANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 2 2004R. Carew The premium quality wine market in British Columbia has grown substantively over the past decade. However, few empirical studies exist to quantify how consumers have responded to these wines. This paper employs a source-differentiated almost ideal demand system (AIDS) model with time-varying parameters to estimate the demand for premium quality wines using scanner sales data from the British Columbia wine market. The empirical findings reveal that consumers' response to foreign-produced wines differs from that for wine produced locally. It is evident that the expenditure elasticities for British Columbia, European and Rest-of-the-World white wines are larger than those for red wines. The high expenditure elasticities associated with British Columbia white wines may suggest that these wines are associated with higher quality. We reject the hypotheses of block separability and product aggregation. There is no evidence of structural change from the tests employed in this paper. Le marché du vin de qualité supérieure a considérablement pris de l'expansion en Colombie-Britannique ces dix dernières années. Les auteurs utilisent un modèle à demande quasi idéale avec différenciation de la source et paramètres variant dans le temps pour estimer la demande de vin de qualité supérieure à partir des chiffres de vente sur le marché provincial. Les résultats empiriques indiquent que les consommateurs ne réagissent pas aux vins étrangers de la même façon qu'aux vins du cru. Les élasticités des dépenses sont manifestement plus nombreuses pour les vins blancs de la Colombie-Britannique, d'Europe et d'autres régions que pour les vins rouges. Les fortes élasticités liées aux vins blancs du cru laissent croire que ces derniers sont d'une grande qualité. Les auteurs rejettent l'hypothèse d'une séparabilité par bloc et de l'agrégation des produits. Les tests employés dans le cadre de cette recherche ne révèlent aucun changement structural. [source] | ||||||||||