Explaining Food Consumption Patterns in Greece

Abstract

This paper decomposes observed changes in Greek food budget-shares into three components: the total substitution effect, the budget (total expenditure) effect, and the habit effect. The analysis is based on a dynamic specification of the AIDS model. The empirical results indicate that (i) the effectfs) explaining the evolution of consumption patterns vary across food items and (ii) that accession to the EU increased the relative contribution of the total substitution effect.

Household meat demand in Greece: A demand systems approach using microdata

“…that account for more than 80% of the total spent on meat in Greece+ Research indicates that historically, beef products~veal and beef ! have accounted for nearly half of total meat expenditure+ In the past few years, this percentage has begun to slowly decline+ The same trend characterizes lamb products~lamb, sheep, and goat!, which decreased from 26+5% in 1981-1982to 18+9% in 1993s share increased during the 1981-1988 period from 12+5 to 13+2%, and then began to decline, reaching 11+4% during 1993-1994+ Finally, the share of poultry showed the most remarkable change, increasing from 10+8% in 1981-1982 to 18+1% in 1993-1994+ These shifts and their underlying causes are of interest to the industry, as well as to policy makers+ Most of the previous studies on this topic that employed a demand system to investigate the factors that determine the consumption of meat in Greece~Andriko-poulos, Brox, & Georgakopoulos, 1987;Demousis, 1986;Fousekis & Pantzios, 2000;Karagiannis & Velentzas, 1997;Lazaridis, 1989;Rigas, 1987! were conducted using time series data, and they limited their analysis to the effects of income and prices+ However, it has long been recognized that socio-economic and demographic factors are of great importance, because they may underpin consumer preferences~Burton, Dorsett, & Young, 1996!, and they may yield substantially greater precision in calculating the parameters than estimates from time series~aggregate!…”

Time varying parameter and fixed parameter linear AIDS: An application to tourism demand forecasting

“…The concepts of cointegration (CI) and the error correction mechanism have been introduced into the specifications of the LAIDS in order to examine both long-run and short-run features of consumer behaviour. Applications of the dynamic LAIDS, which incorporates the error correction mechanism into LAIDS specifications, have appeared in such areas as the demand for non-durable goods, food and meat products (Attfield, 1997;Balcombe and Davis, 1996;Edgerton et al, 1996;Karagiannis and Velentzas, 1997;Karagiannis et al, 2000 and2002). In the tourism context, Durbarry and Sinclair's (2003) exploratory study specifies an EC-LAIDS to analyse the demand for tourism to Italy, Spain and the UK by French residents.…”

Modeling Tourism Demand: A Dynamic Linear AIDS Approach

“…Applications of the EC-LAIDS can be seen in the studies of demand for nondurable goods, food and meat products, such as Balcombe and Davis (1996), Attfield (1997), Karagiannis and Velentzas (1997), Karagiannis et al (2000) and Karagiannis and Mergos (2002). Durbarry and Sinclair (2003) introduced this approach to tourism demand analysis.…”