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THE ALMOST IDEAL DEMAND SYSTEM: AN APPLICATION TO FOOD AND MEAT GROUPS FOR FRANCE
Author(s) -
Fulponi L.
Publication year - 1989
Publication title -
journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.157
H-Index - 61
eISSN - 1477-9552
pISSN - 0021-857X
DOI - 10.1111/j.1477-9552.1989.tb01085.x
Subject(s) - almost ideal demand system , ideal (ethics) , order (exchange) , econometrics , economics , value (mathematics) , microeconomics , mathematics , agricultural economics , statistics , production (economics) , finance , philosophy , epistemology
This paper presents the results from estimating an Almost Ideal Demand System (AIDS) for food and meat for France. Since AIDS is indirectly non‐additive and consistent with the requirements of demand theory as well as having other desirable characteristics, it is an appropriate choice for examining food and meat demand. A particular advantage of AIDS is that its linear approximation is an excellent first‐order approximation to the complete system and this version is used in the present paper. Income and price elasticities are presented, calculated at both their mean value and at different points to examine possible changes in patterns of demand behaviour.