Lithuania's Food Demand During Economic Transition

Posted: 10 Sep 2001

See all articles by Ferdaus Hossain

Ferdaus Hossain

Rutgers, The State University of New Jersey - Food Policy Institute

Helen H. Jensen

Iowa State University - Department of Economics

Abstract

The linear approximate version of the almost ideal demand system (LA-AIDS) model is estimated using data from the Lithuanian household budget survey (HBS) covering the period from July 1992 to December 1994. Price and real expenditure elasticities for 12 food groups were estimated based on the estimated coefficients of the model. Very little or nothing is known about the demand parameters of Lithuania and other former socialist countries, so the results are of intrinsic interest. Estimated expenditure elasticities were positive and statistically significant for all food groups, while all own-price elasticities were negative and statistically significant, except for that of eggs which was insignificant. Results suggest that Lithuanian household consumption did respond to price and real income changes during their transition to a market-oriented economy.

Keywords: Transition economies, Food demand, LA-AIDS, Fixed effects model

Suggested Citation

Hossain, Ferdaus and Jensen, Helen H., Lithuania's Food Demand During Economic Transition. Agricultural Economics, Vol. 23, No. 1, June 2000. Available at SSRN: https://ssrn.com/abstract=250085

Ferdaus Hossain (Contact Author)

Rutgers, The State University of New Jersey - Food Policy Institute ( email )

55 Dudley Road
ASB III, Rutgers Plaza
New Brunswick, NJ 0801-8520
United States

Helen H. Jensen

Iowa State University - Department of Economics ( email )

260 Heady Hall
Ames, IA 50011
United States
515-294-6253 (Phone)
515-294-6336 (Fax)

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