Title

Lithuania's food demand during economic transition

Campus Units

Economics, Center for Agricultural and Rural Development

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

6-2000

Journal or Book Title

Agricultural Economics

Volume

23

Issue

1

First Page or Article ID Number

31

Last Page

40

DOI

10.1111/j.1574-0862.2000.tb00081.x

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.

Comments

This is a working paper of an article from Agricultural Economics 23 (2000): 31, doi: 10.1111/j.1574-0862.2000.tb00081.x.