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Food demand elasticities for A ustralia
Author(s) -
Ulubasoglu Mehmet,
Mallick Debdulal,
Wadud Mokhtarul,
Hone Phillip,
Haszler Henry
Publication year - 2016
Publication title -
australian journal of agricultural and resource economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 1364-985X
DOI - 10.1111/1467-8489.12111
Subject(s) - economics , price elasticity of demand , econometrics , demand curve , incentive , intuition , microeconomics , agricultural economics , epistemology , philosophy
There is renewed interest in robust estimates of food demand elasticities at a disaggregated level not only to analyse the impact of changing food preferences on the agricultural sector, but also to establish the likely impact of pricing incentives on households. Using data drawn from two national H ousehold E xpenditure S urveys covering the periods 1998/1999 and 2003/2004, and adopting an A lmost I deal D emand S ystem approach that addresses the zero observations problem, this paper estimates a food demand system for 15 food categories for A ustralia. The categories cover the standard food items that A ustralian households demand routinely. Own‐price, cross‐price and expenditure elasticity estimates of the M arshallian and H icksian types have been derived for all categories. The parameter estimates obtained in this study represent the first integrated set of food demand elasticities based on a highly disaggregated food demand system for A ustralia, and all accord with economic intuition.