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Modelling demand and price equations of the Italian agricultural sector

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  • ERNESTO FELLI
  • GIOVANNI PIERSAN

Abstract

A model is presented, which determines consumption, retail prices, imports and marketing services of food products, separated into food of animal and $$$ vegetable origin. The relations are specified employing distributed lags, the coefficients of which are restricted so as to secure long run dynamic equilibrium. The resulting equations indicate income and price inelastic consumer food expenditure, whereas imports are very sensitive to income changes, but not to price changes. Retail price changes are found to be dominated by marketing service price changes.

Suggested Citation

  • Ernesto Felli & Giovanni Piersan, 1982. "Modelling demand and price equations of the Italian agricultural sector," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 9(3), pages 271-300.
    • Handle: RePEc:oup:erevae:v:9:y:1982:i:3:p:271-300.
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    File URL: http://hdl.handle.net/10.1093/erae/9.3.271
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