The Estimation of a Linear Demand System for Basic Types of Meat

CERGE-EI Working Paper Series No. 69

25 Pages Posted: 23 Feb 2010

See all articles by Karel Janda

Karel Janda

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Date Written: May 1, 1994

Abstract

This paper empirically investigates the relevance of the standard economic theory of demand, as expressed in the concept of elasticities, in the period of economic transition from a centrally planned to a market economy. From the econometric point of view, the technical subject of this paper is an application of the multivariate regression model in the context of estimation of the linear system of demand equations. The results of this article confirm that in accordance with standard stylized facts the demand for a wide group of food such as meats is price inelastic. In a deeper disaggregation to the level of individual kinds of meat, there exists the potential for changes in demand dependent on price changes. The results of this project show that the Czech retail meat market behaved during the years of economic transition in a way consistent with the behaviour of a market economy as postulated by intuition, by economic theory and by empirical results from developed market economies.

Keywords: regression analysis, demand system, elasticities, meat market

Suggested Citation

Janda, Karel, The Estimation of a Linear Demand System for Basic Types of Meat (May 1, 1994). CERGE-EI Working Paper Series No. 69, Available at SSRN: https://ssrn.com/abstract=1555964 or http://dx.doi.org/10.2139/ssrn.1555964

Karel Janda (Contact Author)

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )

Politickych veznu 7
Prague, 111 21
Czech Republic
+422 240 05 223 (Phone)
+422 242 11 374 (Fax)

HOME PAGE: http://www.cerge-ei.cz

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
78
Abstract Views
566
Rank
559,388
PlumX Metrics