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Food Demand in Slovenia

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  • Regorsek, Darja
  • Erjavec, Emil

Abstract

The objective of this research is to analyse food consumption patterns in Slovenia for households segmented by quartile income levels and for whole Slovenian population. Food items are divided into seven commodity groups. Cross-sectional household data from Household Budget Survey 2001 were used. We apply the linearly approximated Almost Ideal Demand System (LA/AIDS). Empirical results show positive expenditure elasticities being close to one where in general demands for dairy products and for vegetables have expenditure elasticities higher than unity. All Marshallian and Hicksian own price elasticities are negative and less than one. Demand for meat and fish is quite price inelastic whereas demand for vegetables is pretty sensitive to its own price changes. Results indicate that Slovenia is losing consumption characteristics typical for countries in transition however, some unique food habits persist.

Suggested Citation

  • Regorsek, Darja & Erjavec, Emil, 2007. "Food Demand in Slovenia," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9409, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa103:9409
    DOI: 10.22004/ag.econ.9409
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    1. Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-356, May.
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    3. Everett B. Peterson & Ronald W. Cotterill, 1998. "Incorporating Flexible Demand Systems in Empirical Models of Market Power," Food Marketing Policy Center Research Reports 043, University of Connecticut, Department of Agricultural and Resource Economics, Charles J. Zwick Center for Food and Resource Policy.
    4. Richard Green & Julian M. Alston, 1990. "Elasticities in AIDS Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(2), pages 442-445.
    5. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation of Food Demand Nutrient Elasticities from household Survey Data," Technical Bulletins 184370, United States Department of Agriculture, Economic Research Service.
    6. Huang, Kuo S. & Lin, Biing-Hwan, 2000. "Estimation Of Food Demand And Nutrient Elasticities From Household Survey Data," Technical Bulletins 33579, United States Department of Agriculture, Economic Research Service.
    7. John Muellbauer, 1975. "Aggregation, Income Distribution and Consumer Demand," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 42(4), pages 525-543.
    8. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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    1. Braha, Kushtrim & Cupak, Andrej & Qineti, Artan & Pokrivcak, Jan, 2018. "Food Demand System in Transition Economies: Evidence from Kosovo," 162nd Seminar, April 26-27, 2018, Budapest, Hungary 272050, European Association of Agricultural Economists.

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