Demand for food during economic transition: an AIDS econometric model for Slovenia, 1988–2008

Abstract

This article investigates the demand for food in Slovenia in 1988–2008 by employing an Almost Ideal Demand System based on Household Budget Survey datasets with own production included. It was established that the demand for food was mostly inelastic, while the responsiveness of households to income and food prices was in general increasing with time. Even though expenditure shares for food did not vary much by income brackets, there were some differences in the elasticities. Taking own production into account, the elasticities of food demand decreased. Overall, Slovenians preserved quite uniform nutritional habits during the transition period; changing to some extent with time but not much in structure by disposable income.

Acknowledgement

The authors are immensely grateful to the Statistical Office of the Republic of Slovenia (SORS) for provision of the data and to Tine Stanovnik from the University of Ljubljana for very helpful comments and suggestions. Responsibility for the views expressed and any remaining errors is ours alone.