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Estimates of Food Demand Elasticities for Great Britain: 1972–1994
Author(s) -
Tiffin Abigail,
Tiffin Richard
Publication year - 1999
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.1477-9552.1999.tb00800.x
Subject(s) - almost ideal demand system , economics , econometrics , estimation , food prices , agricultural economics , price elasticity of demand , bayesian probability , microeconomics , aggregate demand , food security , macroeconomics , statistics , mathematics , geography , production (economics) , monetary policy , agriculture , management , archaeology
This paper reports the results of the estimation of Almost Ideal Demand Systems (AIDS) for UK food demand using time series data from the National Food Survey. A Bayesian approach is used to impose curvature restrictions in the model. The aim is to obtain estimates of Hicksian, Marshallian and expenditure demand elasticities for UK food which are fully consistent with static optimisation by consumers. Overall, the results concur with expectations as aggregate food demand is both price and income inelastic and individual food categories are mostly price and income inelastic. The notable exception being meat, specifically pork, beef and chicken.