Modelling consumer’s behaviour of the meat consumption in Slovakia
R. Benda Prokeinova, M. Hanovahttps://doi.org/10.17221/33/2015-AGRICECONCitation:Benda Prokeinova R., Hanova M. (2016): Modelling consumer’s behaviour of the meat consumption in Slovakia. Agric. Econ. – Czech, 62: 235-245.
There exists a plenty extensive theoretical and empirical literature on what determines the consumption levels over time and across countries, but less research into the changes in the consumption patterns (i.e. the mix of different goods and services that is purchased). To better understand how changing incomes and prices influenced the consumption patterns, the contribution estimates the Almost Ideal Demand System (AIDS) models. The aim of the paper is to find patterns and preference changes in the consumer demand for meat in Slovakia. From the methodological aspect, there were used important items of the demand, and for the consumer behaviour analysis, there were computed elasticity coefficients by using the model AIDS. The coefficients of the price and income demand elasticity were determined. The computed elasticities showed that all meat items had a positive income elasticity of demand which implies that they were normal goods. Beef and pork were expenditure (income) elastic and hence could be considered as a luxury, while poultry and fish were income inelastic meaning that those were of necessity.Keywords:
AIDS model, consumer patterns, meat demand, own and cross price elasticitiesReferences:
Akbay C., Jones E. (2006): Demand elasticities and price-cost margin ratios for grocery products in different socioeconomic groups. Agricultural Economics – Czech, 52: 225–235.Asche Frank, Bjorndal Trond, Salvanes Kjell G. (1998): The Demand for Salmon in the European Union: The Importance of Product Form and Origin. Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, 46, 69-81 https://doi.org/10.1111/j.1744-7976.1998.tb00082.xBansback Bob (1995): TOWARDS A BROADER UNDERSTANDING OF MEAT DEMAND - PRESIDENTIAL ADDRESS. Journal of Agricultural Economics, 46, 287-308 https://doi.org/10.1111/j.1477-9552.1995.tb00777.xBarnett William A., Serletis Apostolos (2008): Consumer preferences and demand systems. Journal of Econometrics, 147, 210-224 https://doi.org/10.1016/j.jeconom.2008.09.009Braschler Curtis (1983): The Changing Demand Structure for Pork and Beef in the 1970s: Implications for the 1980s. Southern Journal of Agricultural Economics, 15, 105-110 https://doi.org/10.1017/S0081305200016320Buse Adolf, Chan Wing H (2000): Invariance, price indices and estimation in almost ideal demand systems. Empirical Economics, 25, 519-539 https://doi.org/10.1007/s001810000031Deaton A., Muellbauer J. (1980): An almost ideal demand system. American Economic Revue, 70: 312–326.Dickinson D.L., Hobbs J.E., Bailey D. (2003): A comparison of US and Canadian consumers’ willingness to pay for red-meat traceability. In: American Agricultural Economics Association Annual Meetings, Montreal, July 27–30, 2003.Diewert W.E. (1987): Index numbers. In: Eatwell J., Milgate M., Newman P. (eds): The New Palgrave-A Dictionary of Economics. Stockton Press, New YorkFraser Iain, Moosa Imad A. (2002): Demand Estimation in the Presence of Stochastic Trend and Seasonality: The Case of Meat Demand in the United Kingdom. American Journal of Agricultural Economics, 84, 83-89 https://doi.org/10.1111/1467-8276.00244Gravelle H., Rees R. (1992), Microeconomics. Longman Publishing, New York.Green Richard, Alston Julian M. (1990): Elasticities in AIDS Models. American Journal of Agricultural Economics, 72, 442- https://doi.org/10.2307/1242346Gujarati D.N. (2004): Basic Econometrics. 4th ed. Mc Grawhill/Irwin, New York.Hsiao C. (1986): Analysis of Panel Data. Cambridge University Press, Cambridge.Hupková D., Bielik P., Turčeková N. (2009) Structural changes in the beef meat demand in Slovakia and demand elasticity estimation. Agricultural Economics – Czech, 55: 361–367.Anwarul Hu A.S.M., Arshad F.M. (2010): Demand Elasticities for Different Food Items in Bangladesh. Journal of Applied Sciences, 10, 2369-2378 https://doi.org/10.3923/jas.2010.2369.2378Huston J.L. (1999): Beef marketing challenges in the US. IMS Newsletter No 207, 31/3/99.Moschini Giancarlo, Meilke Karl D. (1989): Modeling the Pattern of Structural Change in U.S. Meat Demand. American Journal of Agricultural Economics, 71, 253- https://doi.org/10.2307/1241582Moschini G. (1995): Units of Measurement and the Stone Index in Demand System Estimation. American Journal of Agricultural Economics, 77, 63-68 https://doi.org/10.2307/1243889Nagyová Ľ., Kročanová M., Maďarová Ľ. (2007): The food advertising market in the Slovak Republic. Agricultural Economics – Czech, 53: 370–378.Nicholson W. (1992): Microeconomic Theory: Basic Principles and Extensions, 5th ed., Dryden Press, Fort Worth.Ogura M. (2004a): Estimating a Demand System in the AIDS Model: The Case of Japan. Graduate School of Economics, Econometrics Workshop, Kobe University.Ogura M. (2004b): Structural Change in the Demand Systems. Graduate School of Economics, Econometrics Workshop, Kobe University.SAS Institute Inc. (1999): SAS/ETS User’s Guide, Version 8. SAS Institute Inc., Cary, NC.Selvanathan Saroja, Selvanathan E. Antony (2006): A cross-country analysis of consumption patterns. Applied Economics, 25, 1245-1259 https://doi.org/10.1080/00036849300000186Situation and Outlook Reports of the Meat (1997–2014): Research Institute of Agricultural and Food Economics. Available at http://www.vuepp.sk/en/publikacie_en.htmSlovak Statistical Office (1999–2014): Incomes, Expenditures and Consumption of Private Households in SR. The household Budget Survey of the Slovak. Statistical Office of the Slovak Republic, Bratislava.Stávková J., Stejskal L., Toufarová Z. (2008): Factors influencing consumer behaviour. Agricultural Economics – Czech, 54: 276–284.Talukder R.K. (1990a): Food consumption parameters in Bangladesh-implications for food policy. Bangladesh Journal Agricultura Economics, 13: 43–66.Talukder R.K. (1990b): Food pricing policies and nutrition in Bangladesh: A welfare analysis. [Ph.D. Thesis.] School of Agriculture, La Trobe University, Melbourne.Tridimas George (2000): The analysis of consumer demand in Greece. Model selection and dynamic specification. Economic Modelling, 17, 455-471 https://doi.org/10.1016/S0264-9993(99)00033-4