IDEAS home Printed from https://ideas.repec.org/p/ags/eaa162/272050.html
   My bibliography  Save this paper

Food Demand System in Transition Economies: Evidence from Kosovo

Author

Listed:
  • Braha, Kushtrim
  • Cupak, Andrej
  • Qineti, Artan
  • Pokrivcak, Jan

Abstract

Study performs food demand analysis in the case of Kosovo. Paper models food consumption behaviour using the HBS data for the period 2005-2012. Along with assessment of the non-parametric Engel curves, here we estimate complete demand system by using Quadratic Almost Ideal Demand System (QUAIDS). Elasticity estimates for five food bundles were amplified with demographic and expenditure controlling variables. Main results reveal that cereals and dairy products are perceived as inferior goods, while the meat, fruits and vegetables are regarded as normal goods. Consistency with the demand theory is affirmed when estimating price and expenditure elasticities. Exception is noticed in the case of cereals, depicting significantly higher own-price elasticity as well as negative expenditure elasticity. Such price sensitivity signals that Kosovo is undergoing transition of the food pattern from the traditional cereal-based diet towards the consumption of the high-value food such as meat and fish. Rising disposable income is found to play prominent role in fostering nutrition transition of the food pattern in Kosovo.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:eaa162:272050
    DOI: 10.22004/ag.econ.272050
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/272050/files/Braha_Cupak_Qineti_Pokrivcak.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/272050/files/Braha_Cupak_Qineti_Pokrivcak.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.272050?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
    ---><---

    References listed on IDEAS

    as
    1. JosÈ Alberto Molina & Ana Isabel Gil, 2005. "The demand behavior of consumers in Peru: a demographic analysis using the QUAIDS," Journal of Developing Areas, Tennessee State University, College of Business, vol. 39(1), pages 191-206, September.
    2. 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.
    3. Ray, Ranjan, 1983. "Measuring the costs of children : An alternative approach," Journal of Public Economics, Elsevier, vol. 22(1), pages 89-102, October.
    4. Braha, Kushtrim & Rajcaniova, Miroslava & Qineti, Artan, 2015. "Spatial Price Transmission and Food Security: The case of Kosovo," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207843, Italian Association of Agricultural and Applied Economics (AIEAA).
    5. Hossain, Ferdaus & Jensen, Helen H., 2000. "Lithuania's food demand during economic transition," Agricultural Economics, Blackwell, vol. 23(1), pages 31-40, June.
    6. John Gibson, 2002. "Why Does the Engel Method Work? Food Demand, Economies of Size and Household Survey Methods," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(4), pages 341-359, September.
    7. Coloma, German, 2009. "Estimation of Demand Systems Based on Elasticities of Substitution," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 5(1-2), pages 1-18, March.
    8. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    9. BARTEN, Anton P., 1969. "Maximum likelihood estimation of a complete system of demand equations," LIDAM Reprints CORE 34, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    11. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    12. Abdulai, Awudu & Aubert, Dominique, 2004. "A cross-section analysis of household demand for food and nutrients in Tanzania," Agricultural Economics, Blackwell, vol. 31(1), pages 67-79, July.
    13. Cupák, Andrej & Pokrivčák, Ján & Rizov, Marian, 2015. "Food Demand and Consumption Patterns in the New EU Member States: The Case of Slovakia," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 63(4), pages 339-358.
    14. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-383, June.
    15. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
    16. Brian P. Poi, 2012. "Easy demand-system estimation with quaids," Stata Journal, StataCorp LP, vol. 12(3), pages 433-446, September.
    17. Braha, Kushtrim & Cupák, Andrej & Pokrivčák, Ján & Qineti, Artan & Rizov, Marian, 2017. "Economic analysis of the link between diet quality and health: Evidence from Kosovo," Economics & Human Biology, Elsevier, vol. 27(PA), pages 261-274.
    18. Doan, Dung, 2014. "Does income growth improve diet diversity in China?," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165833, Australian Agricultural and Resource Economics Society.
    19. Zhou, De & Yu, Xiaohua & Herzfeld, Thomas, 2015. "Dynamic food demand in urban China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 7(1), pages 27-44.
    20. Regorsek, Darla & Erjavec, Emil & Pfajfar, Lovrenc, 2005. "Food Demand in Slovenia," 2005 Conference: Slovenia in the EU - Challenges for Agriculture, Food Science and Rural Affairs, November 10-11, 2005, Moravske Toplice, Slovenia 183782, Slovenian Association of Agricultural Economists (DAES).
    21. Laetitia Duval & François-Charles Wolff, 2013. "The consumption-enhancing effect of remittances: Evidence from Kosovo," wiiw Balkan Observatory Working Papers 107, The Vienna Institute for International Economic Studies, wiiw.
    22. Brosig, Stephan, 2000. "A Model Of Household Type Specific Food Demand Behaviour In Hungary," IAMO Discussion Papers 14864, Institute of Agricultural Development in Transition Economies (IAMO).
    23. Muellbauer, John, 1976. "Community Preferences and the Representative Consumer," Econometrica, Econometric Society, vol. 44(5), pages 979-999, September.
    24. Goodwin, Barry K. & Phaneuf, Daniel J., 2001. "Microeconometric Modeling Of Household Food Demand: The Case Of Transition Bulgaria," 2001 Annual meeting, August 5-8, Chicago, IL 20713, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    25. Petr Janský, 2014. "Consumer Demand System Estimation and Value Added Tax Reforms in the Czech Republic," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(3), pages 246-273, June.
    26. Braha, Kushtrim1mailto & Cupák, Andrej & Qineti, Artan & Pokrivčák, Ján & Rizov, Marian, 2017. "Economic analysis of the link between diet quality and health: Evidence from Kosovar micro-data," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 261150, European Association of Agricultural Economists.
    27. Faton Osmani & Matthew Gorton & John White, 2013. "Agricultural households, poverty and the rural labour market in Kosovo," Post-Communist Economies, Taylor & Francis Journals, vol. 25(2), pages 241-252, June.
    28. Surabhi Mittal, 2010. "Application of the Quaids Model to the Food Sector in India," Journal of Quantitative Economics, The Indian Econometric Society, vol. 8(1), pages 42-54, January.
    29. repec:bla:obuest:v:64:y:2002:i:4:p:341-59 is not listed on IDEAS
    30. Liefert, William M. & Swinnen, Johan F.M., 2002. "Changes In Agricultural Markets In Transition Economies," Agricultural Economic Reports 33945, United States Department of Agriculture, Economic Research Service.
    31. Kamil Dybczak & Peter Tóth & David Voòka, 2014. "Effects of Price Shocks on Consumer Demand: Estimating the QUAIDS Demand System on Czech Household Budget Survey Data," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(6), pages 476-500, December.
    32. Szigeti, Judith & Podruzsik, Szilard, 2011. "How does it work for Hungarian food consumers? A medium-term analysis," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 113(1), pages 1-16, March.
    33. Doan, Dung, 2014. "Does income growth improve diet diversity in China?," 2014 Conference (58th), February 4-7, 2014, Port Macquarie, Australia 165836, Australian Agricultural and Resource Economics Society.
    34. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    35. Kunal Sen & Colin Kirkpatrick, 2011. "A diagnostics approach to economic growth and employment policy in low income economies: The case of Kosovo," Journal of International Development, John Wiley & Sons, Ltd., vol. 23(1), pages 132-154, January.
    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. Korir, Lilian & Rizov, Marian & Ruto, Eric, 2020. "Food security in Kenya: Insights from a household food demand model," Economic Modelling, Elsevier, vol. 92(C), pages 99-108.
    2. Peter Tóth & Andrej Cupák & Marian Rizov, 2021. "Measuring the efficiency of VAT reforms: a demand system simulation approach," Oxford Economic Papers, Oxford University Press, vol. 73(3), pages 1218-1243.
    3. 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.
    4. Cupák, Andrej & Pokrivčák, Ján & Rizov, Marian, 2015. "Food Demand and Consumption Patterns in the New EU Member States: The Case of Slovakia," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 63(4), pages 339-358.
    5. Rizoc, Marian & Cupak, Andrej & Pokrivcak, Jan, 2015. "Food Security and household consumption patterns in Slovakia," 2015 Conference, August 9-14, 2015, Milan, Italy 211553, International Association of Agricultural Economists.
    6. Korir, Lilian & Rizov, Marian & Ruto, Eric, 2018. "Analysis of household food demand and its implications on food security in Kenya: an application of QUAIDS model," 92nd Annual Conference, April 16-18, 2018, Warwick University, Coventry, UK 273474, Agricultural Economics Society.
    7. Thomas, Alastair, 2019. "Who Would Win from a Multi-rate GST in New Zealand: Evidence from a QUAIDS Model," Working Paper Series 8127, Victoria University of Wellington, Chair in Public Finance.
    8. Thomas, Alastair, 2019. "Who Would Win from a Multi-rate GST in New Zealand: Evidence from a QUAIDS Model," Working Paper Series 20932, Victoria University of Wellington, Chair in Public Finance.
    9. Barnett, William A. & Serletis, Apostolos, 2008. "Consumer preferences and demand systems," Journal of Econometrics, Elsevier, vol. 147(2), pages 210-224, December.
    10. Oliver, Atara Stephanie, 2013. "Information Technology and Transportation: Substitutes or Complements?," MPRA Paper 46548, University Library of Munich, Germany.
    11. Barnett, William A. & Serletis, Apostolos, 2008. "Measuring Consumer Preferences and Estimating Demand Systems," MPRA Paper 12318, University Library of Munich, Germany.
    12. garcia, juan manuel & alvarado enciso, alfredo, 2018. "Estimación de elasticidades de demanda de bienes y servicios en Perú mediante los métodos AIDS y QUAIDS [Estimating demand elasticities of goods and services in Peru using the AIDS and QUAIDS metho," MPRA Paper 89282, University Library of Munich, Germany.
    13. Pokrivcak, Jan & Cupak, Andrej & Rizov, Marian, 2015. "Household food security and consumption patterns in Central and Eastern Europe: the Case of Slovakia," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207287, Italian Association of Agricultural and Applied Economics (AIEAA).
    14. Kimsanova, Barchynai & Sanaev, Golib & Herzfeld, Thomas, 2022. "Dynamics of food consumption during political instability: evidence from Kyrgyzstan," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321213, Agricultural Economics Society - AES.
    15. Barnett, William A. & Serletis, Apostolos, 2008. "The Differential Approach to Demand Analysis and the Rotterdam Model," MPRA Paper 12319, University Library of Munich, Germany.
    16. Apostolos Serletis & Libo Xu, 2020. "Demand systems with heteroscedastic disturbances," Empirical Economics, Springer, vol. 58(4), pages 1913-1921, April.
    17. García-Germán, Sol & Romeo, Alessandro & Magrini, Emiliano & Balié, Jean, 2016. "The impact of food price shocks on weight loss: Evidence from the adult population of Tanzania," DARE Discussion Papers 1611, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    18. Tefera, Nigussie, 2012. "Welfare Impacts of Rising Food Prices in Rural Ethiopia: a Quadratic Almost Ideal Demand System Approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126698, International Association of Agricultural Economists.
    19. Weber, Regine, 2015. "Welfare Impacts of Rising Food Prices: Evidence from India," 2015 Conference, August 9-14, 2015, Milan, Italy 211901, International Association of Agricultural Economists.
    20. LaFrance, Jeffrey T., 2008. "The structure of US food demand," Journal of Econometrics, Elsevier, vol. 147(2), pages 336-349, December.

    More about this item

    Keywords

    Demand and Price Analysis;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:eaa162:272050. 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: AgEcon Search (email available below). General contact details of provider: http://www.eaae.org .

    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.