Estimating interaction between income and expenditures for food and non-alcoholic beverages in Slovakia

Type Working Paper
Title Estimating interaction between income and expenditures for food and non-alcoholic beverages in Slovakia
Author(s)
Publication (Day/Month/Year) 2016
URL http://spu.fem.uniag.sk/mvd2016/proceedings/en/articles/s3/hupkova.pdf
Abstract
The main aim of the paper is to evaluate the relationship between incomes and expenditures for
foodstuff categories, the level, and structure of expenditures and next statistical evaluation of their
interaction. Budget shares and elasticity coefficients were estimated for food and non-alcoholic
beverages consumption for the individual household categories according to the economical activity
of head during the period 2004-2012. Using the aggregate data, we estimate the elasticities on income
and price for the food demand in Slovakia. Knowing the values of demand elasticities for food is
widely used approach to correct trade policy making and analysing trade patterns.

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