Income elasticity of Czechs' household demand for meat and meat products: autoregressive model

• Main Author: Pavel Syrovátka
• Format: Article
• Language: English
• Published: Mendel University Press 2008-01-01
• Series: Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
• Subjects: demand for meat and meat products; autoregressive Engel's model; current elasticity; dynamic elasticity; long term elasticity; long equilibrium elasticity
• Online Access: https://acta.mendelu.cz/56/6/0149/
• ISSN: 1211-8516; 2464-8310

The paper is focused on the wider concept of the income-elasticity analysis within of the average Czechs' household demand for the meat and meat products including demand for fish and fish products. Within the investigated consumer demand, the levels of current income elasticity, dynamic income elasticity, long-term income elasticity, long-equilibrium income elasticity were evaluated. Realised demand analysis was based on the autoregressive log-linear model of Engel's curve: lnqt = −11.9878 + 1.4733lnxt + 0.1917lnqt−1 + vt, which was estimated by using the CZSO-HS data from 1995 to 2000. Developed Engel model of the quarterly demand was statistically significant (F-test, t-tests, DW-test). According to this autoregressive log-linear Engel's model, the level of the current income elasticity of the average Czechs' household demand for the meat and meat products was 1.4733. The dynamic income elasticity with quarterly lag achieved the value of 0.2825. Half-yearly dynamic income elasticity of the average Czechs' household demand for the meat and meat products obtained the value of 5.4186 · 10−2. The level of year dynamic income elasticity of examined consumer demand was 1.9915 · 10−3. In observed years (1995–2000), the applied Engel's model simulated the depression of the level of dynamic income elasticity of the average Czechs' household demand for the meat and meat products. By using the estimated autoregressive log-linear model of Engel's curve, the log-term income elasticity was studied too. Half-yearly income elasticity of the examined consumer demand achieved the value of 1.7558. The level of year income elasticity of the demand was 1.8204. The value of long-term income elasticity of the average Czechs' household demand for the meat and meat products tends to 1.8228. The determined value implies the long-equilibrium income elasticity of this consumer demand.