Open AccessAnalysis of methodological approaches to evaluation of complementary and substitution relationships in consumer demand for food
Author(s) -
Pavel Syrovátka,
Libor Grega
Publication year - 2002
Publication title -
zemědělská ekonomika/agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.439
H-Index - 22
eISSN - 1805-9295
pISSN - 0139-570X
DOI - 10.17221/5352-agricecon
Subject(s) - substitution (logic) , econometrics , economics , usable , microeconomics , regression analysis , mathematics , statistics , computer science , programming language , world wide web
The article is focused on analysis of methodological approaches usable for the analysis of complementary and substitution relationships in consumer demand for food. Demand on food markets is mostly analysed using coefficients of cross elasticities. These coefficients reflect character and intensity of demand relationships of analysed foodstuffs. Besides this traditional approach, another methodological possibility is presented in the paper. This approach is based on correlation and paired regression analysis. Paired indices of determination and correlation, respectively paired regression parameters, may be also used to solve substitution and complementary relationships between the analysed food commodities. Moreover, this methodological approach can be used for analysis of complementary and substitution relationships between aggregate groups of goods, which is not possible if coefficients of indirect price elasticity of demand are used.