IDEAS home Printed from https://ideas.repec.org/a/caa/jnlage/v53y2007i9id636-agricecon.html
   My bibliography  Save this article

Exponential model of the Engel curve: Application within the income elasticity analysis of the Czech households' demand for meat and meat products

Author

Listed:
  • P. Syrovátka

    (Mendel University of Agriculture and Forestry, Brno, Czech Republic)

Abstract

The paper is focused on the economic and mathematical analysis of the Engel demand model in the exponential form: q = a0 × ea1/X.Properties of this exponential model are studied with respect to its application possibilities in the field of evaluation of the income elasticity of the Czech households' demand for meat and meat products. According to the used database of the consumer behaviour of the average Czech household from 1995 to 2000 (CZSO-HES), the analysed exponential model of the Engel curve attained the following parameters:, Qt = At × e-17336.8908/Xt, where At = 44,6019 × e1,1119×10-4 × t2 and t = 1, 2, …, 24. For the analysis of the income-demand elasticity of the developed exponential form, the model offers the static hyperbolic function: η (Xt) = 17 336.8908/Xt. The derived hyperbolic function of the income-demand elasticity falls digressively and the simulated values tend to the zero level. In analysed time period (1995-2000), the income-demand reactions were simulated in the elastic form with the values from 1.3866 to 1.1340. The average level of the analysed income- demand elasticity between the observed years reached the value of 1.2121, thus the 1% rise in the real level of the quarter households' incomes per capita led to the average increase in the average Czech household's demand for meat and meat products, including fish and fish products, of about 1.21%.

Suggested Citation

  • P. Syrovátka, 2007. "Exponential model of the Engel curve: Application within the income elasticity analysis of the Czech households' demand for meat and meat products," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 53(9), pages 411-420.
    • Handle: RePEc:caa:jnlage:v:53:y:2007:i:9:id:636-agricecon
    DOI: 10.17221/636-AGRICECON
    as

    Download full text from publisher

    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/636-AGRICECON.html
    Download Restriction: free of charge
    File URL: http://agricecon.agriculturejournals.cz/doi/10.17221/636-AGRICECON.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.17221/636-AGRICECON?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Donald R. McDowell & Joyce E. Allen-Smith & Patricia E. McLean-Meyinsse, 1997. "Food Expenditures and Socioeconomic Characteristics: Focus on Income Class," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1444-1451.
    2. Banks, James & Blundell, Richard & Lewbel, Arthur, 1996. "Tax Reform and Welfare Measurement: Do We Need Demand System Estimation?," Economic Journal, Royal Economic Society, vol. 106(438), pages 1227-1241, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. P. Syrovátka, 2006. "Income elasticity of demand within individual consumer groups and the level of income elasticity of the entire market demand," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 52(9), pages 412-417.
    2. repec:ebl:ecbull:v:8:y:2005:i:4:p:1-8 is not listed on IDEAS
    3. John Creedy, 2008. "Choosing the tax rate in a linear income tax structure," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 11(3), pages 257-276.
    4. Kira Lancker & Julia Bronnmann, 2022. "Substitution Preferences for Fish in Senegal," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 82(4), pages 1015-1045, August.
    5. Fujioka Soichiro & Fukushige Mototsugu, 2019. "The Future of Demand for Food Away from Home and Prepared Food: Cohort and Age Effects in Japan," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 17(1), pages 1-17, May.
    6. Crawford, Ian & Laisney, Francois & Preston, Ian, 2003. "Estimation of household demand systems with theoretically compatible Engel curves and unit value specifications," Journal of Econometrics, Elsevier, vol. 114(2), pages 221-241, June.
    7. Balistreri, Edward J. & Tarr, David G., 2011. "Services Liberalization in Preferential Trade Arrangements: The Case of Kenya," Conference papers 332152, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Toshinobu Matsuda, 2006. "A trigonometric flexible consumer demand system," Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 145-162, February.
    9. Denni Tommasi, 2016. "Household Responses to cash Transfers," Working Papers ECARES ECARES 2016-20, ULB -- Universite Libre de Bruxelles.
    10. Urzúa, Carlos M., 2004. "The Ahmad-Stern approach revisited: Variants and an application to Mexico," EGAP Working Papers 2004-05, Tecnológico de Monterrey, Campus Ciudad de México.
    11. Andrej Cupák & Peter Tóth, 2017. "Measuring the Efficiency of VAT reforms: Evidence from Slovakia," Working and Discussion Papers WP 6/2017, Research Department, National Bank of Slovakia.
    12. Arthur Lewbel & Krishna Pendakur, 2017. "Unobserved Preference Heterogeneity in Demand Using Generalized Random Coefficients," Journal of Political Economy, University of Chicago Press, vol. 125(4), pages 1100-1148.
    13. Alan, Sule & Crossley, Thomas F. & Grootendorst, Paul & Veall, Michael R., 2002. "The effects of drug subsidies on out-of-pocket prescription drug expenditures by seniors: regional evidence from Canada," Journal of Health Economics, Elsevier, vol. 21(5), pages 805-826, September.
    14. Lancker, Kira & Bronmann, Julia, 2020. "Quantifying consumers’ love for marine biodiversity," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304214, Agricultural and Applied Economics Association.
    15. John Creedy, 2007. "Choosing The Tax Rate in a Linear Income Tax Structure: An Introduction," Department of Economics - Working Papers Series 1006, The University of Melbourne.
    16. Olivier Bargain, 2017. "Welfare analysis and redistributive policies," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 15(4), pages 393-419, December.
    17. Arabatzis, Garyfallos & Klonaris, Stathis, 2009. "An analysis of Greek wood and wood product imports: Evidence from the linear quadratic aids," Forest Policy and Economics, Elsevier, vol. 11(4), pages 266-270, July.
    18. Abdelkrim Araar & Paolo Verme, 2019. "Prices and Welfare," Springer Books, Springer, number 978-3-030-17423-1, March.
    19. Marc Fleurbaey & Stéphane Luchini & Erik Schokkaert & Carine Van de Voorde, 2012. "Évaluation des politiques de santé : pour une prise en compte équitable des intérêts des populations," Économie et Statistique, Programme National Persée, vol. 455(1), pages 11-36.
    20. Okonkwo, Jennifer Uju, 2021. "Welfare effects of carbon taxation on South African households," Energy Economics, Elsevier, vol. 96(C).
    21. John Creedy, 2009. "An Approximation For The Optimal Linear Income Tax Rate," Australian Economic Papers, Wiley Blackwell, vol. 48(3), pages 224-236, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:caa:jnlage:v:53:y:2007:i:9:id:636-agricecon. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://www.cazv.cz/en/home/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.