Mathematics in Education, Research and Applications (MERAA), 2024(10), 1
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Published online 2024-12-31
DOI:https://doi.org/10.15414/meraa.2024.10.01.1-8
Demand for food among different income groups of the Slovak population
Ema Lazorčáková, Miroslava Rajčániová
Slovak University of Agriculture in Nitra, Slovakia
Article Fulltext (PDF), pp. 1–8
- Slovakia belongs to the countries where households spend a significant part of their income on necessary goods such as food. Inflationary shocks and policy
interventions can have significantly different effects on different income groups of the population. Therefore, it is important to understand changes in food
demand in different population groups. We employ a linearly approximated almost ideal demand system (AIDS) to estimate a demand system for food
commodities in four income quartiles of households. We use the data from the Slovak household budget survey for 2020. The results reveal that if households
change their total food expenditures, the most significant changes in food demand are expected in the market for meat. Wealthier households are less
sensitive to price changes. In general, demand for food commodities is price inelastic. Regardless of the income quartile of households, the least flexible
reaction to a price change is anticipated for bread and cereals. Demand elasticities help to foresee impacts of policies supporting consumption of households.
- Keywords: demand for food, Almost Ideal Demand System, consumer expenditures
- JEL Classification: D12, D31, Q11