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Food demand elasticities for Australia

Author

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  • Ulubasoglu, Mehmet
  • Mallick, Debdulal
  • Wadud, Mokhtarul
  • Hone, Phillip
  • Haszler, Henry

Abstract

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 Household Expenditure Surveys covering the periods 1998/1999 and 2003/2004, and adopting an Almost Ideal Demand System approach that addresses the zero observations problem, this paper estimates a food demand system for 15 food categories for Australia. The categories cover the standard food items that Australian households demand routinely. Ownprice, cross-price and expenditure elasticity estimates of the Marshallian and Hicksian 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 Australia, and all accord with economic intuition.

Suggested Citation

  • Ulubasoglu, Mehmet & Mallick, Debdulal & Wadud, Mokhtarul & Hone, Phillip & Haszler, Henry, 2016. "Food demand elasticities for Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(2), April.
    • Handle: RePEc:ags:aareaj:292445
    DOI: 10.22004/ag.econ.292445
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    Cited by:

    1. Lokuge Dona, Manori Nimanthika & Zivkovic, Sanja & Lange, Kelly & Chidmi, Benaissa, 2018. "Household Food Consumption And Demand For Nutrients In Sri Lanka," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266670, Southern Agricultural Economics Association.
    2. Syed Hasan & Mathias Sinning, 2018. "GST Reform in Australia: Implications of Estimating Price Elasticities of Demand for Food," The Economic Record, The Economic Society of Australia, vol. 94(306), pages 239-254, September.
    3. Xiaojia Bao & Jianan Li & Puyang Sun, 2019. "Typhoon, Earthquake and Food Price: Evidence from China," Working Papers 2019-07-08, Wang Yanan Institute for Studies in Economics (WISE), Xiamen University.
    4. Freebairn, John, 2018. "Effects of supermarket monopsony pricing on agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), October.
    5. Li, Kuo & Griffith, Garry & Kingwell, Ross & Malcolm, Bill, 2017. "Measuring the Returns to Investment in Research and Development in the Australian Grains Industry," 2017 Conference (61st), February 7-10, 2017, Brisbane, Australia 258674, Australian Agricultural and Resource Economics Society.

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