Food Demand Elasticities for Australia

19 Pages Posted: 4 Apr 2016

See all articles by Mehmet Ali Ulubasoglu

Mehmet Ali Ulubasoglu

Deakin University - School of Accounting, Economics and Finance

Debdulal Mallick

Deakin University - Faculty of Business and Law

Mokhtarul Wadud

Deakin University - Department of Economics

Phillip Hone

Deakin University - School of Accounting, Economics and Finance

Henry Haszler

Deakin University - School of Accounting, Economics and Finance

Date Written: April 2016

Abstract

There is renewed interest in robust estimates of food demand elasticities at a disaggregated level not only to analyse the impact of changing food preferences on the agricultural sector, but also to establish the likely impact of pricing incentives on households. Using data drawn from two national Household Expenditure Surveys covering the periods 1998/1999 and 2003/2004, and adopting an Almost Ideal Demand System approach that addresses the zero observations problem, this paper estimates a food demand system for 15 food categories for Australia. The categories cover the standard food items that Australian households demand routinely. Own‐price, cross‐price and expenditure elasticity estimates of the Marshallian and Hicksian types have been derived for all categories. The parameter estimates obtained in this study represent the first integrated set of food demand elasticities based on a highly disaggregated food demand system for Australia, and all accord with economic intuition.

Keywords: Almost Identical Demand Systems model, Australia, food demand

Suggested Citation

Ulubasoglu, Mehmet Ali and Mallick, Debdulal and Wadud, Mokhtarul and Hone, Phillip and Haszler, Henry, Food Demand Elasticities for Australia (April 2016). Australian Journal of Agricultural and Resource Economics, Vol. 60, Issue 2, pp. 177-195, 2016, Available at SSRN: https://ssrn.com/abstract=2758398 or http://dx.doi.org/10.1111/1467-8489.12111

Mehmet Ali Ulubasoglu (Contact Author)

Deakin University - School of Accounting, Economics and Finance ( email )

Burwood, Victoria 3215
Australia
+61 3 9244 6592 (Phone)

Debdulal Mallick

Deakin University - Faculty of Business and Law ( email )

Burwood, Victoria 3215
Australia

Mokhtarul Wadud

Deakin University - Department of Economics

Australia

Phillip Hone

Deakin University - School of Accounting, Economics and Finance ( email )

Burwood, Victoria 3215
Australia

Henry Haszler

Deakin University - School of Accounting, Economics and Finance ( email )

221 Burwood Highway
Burwood, Victoria 3215
Australia

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
0
Abstract Views
267
PlumX Metrics