Agric. Econ. - Czech, 2007, 53(9):411-420 | DOI: 10.17221/636-AGRICECON
Exponential model of the Engel curve: Application within the income elasticity analysis of the Czech households' demand for meat and meat products
- Mendel University of Agriculture and Forestry, Brno, Czech Republic
The paper is focused on the economic and mathematical analysis of the Engel demand model in the exponential form: q = a0 × ea1/X.Properties of this exponential model are studied with respect to its application possibilities in the field of evaluation of the income elasticity of the Czech households' demand for meat and meat products. According to the used database of the consumer behaviour of the average Czech household from 1995 to 2000 (CZSO-HES), the analysed exponential model of the Engel curve attained the following parameters:, Qt = At × e-17336.8908/Xt, where At = 44,6019 × e1,1119×10-4 × t2 and t = 1, 2, …, 24. For the analysis of the income-demand elasticity of the developed exponential form, the model offers the static hyperbolic function: η (Xt) = 17 336.8908/Xt. The derived hyperbolic function of the income-demand elasticity falls digressively and the simulated values tend to the zero level. In analysed time period (1995-2000), the income-demand reactions were simulated in the elastic form with the values from 1.3866 to 1.1340. The average level of the analysed income- demand elasticity between the observed years reached the value of 1.2121, thus the 1% rise in the real level of the quarter households' incomes per capita led to the average increase in the average Czech household's demand for meat and meat products, including fish and fish products, of about 1.21%.
Keywords: exponential Engel model, explicit dynamic model, income demand elasticity, demand for meat and meat products
Published: September 30, 2007 Show citation
ACS | AIP | APA | ASA | Harvard | Chicago | Chicago Notes | IEEE | ISO690 | MLA | NLM | Turabian | Vancouver |
References
- Banks J., Blundell R., Lewbel A. (1996): Tax reform and welfare measurement: Do we need demand system estimation? Economic Journal, 106 (438): 1227-1241; ISSN 0013-0133.
Go to original source...
- Maurice S.CH., Phillips O.R. (1992): Economic Analysis, Theory and Application. 6 th edition, Irwin, Boston; ISBN 0-256-08209-X.
- McDowell D.R., Allen-Smith J.E., McLean-Meyinsse P.E. (1997): Food Expenditures and Socioeconomic Characteristics: Focus on Income Class. American Journal of Agricultural Economics, 79 (5): 1444-1451. ISSN 00029092.
Go to original source...
- Seger J., Hindls R., Hronová S. (1998): Statistika v hospodářství (Statistics in economy). 1st edition, ETC Publishing, edice Manager/Podnikatel, Praha; ISBN 80-86006-56-5.
- Syrovátka P. (2001): Preference analysis of meat and meat products purchases in selected households' categories. Agricultural Economics - Czech, 47 (11): 514-520.
- Syrovátka P. (2002): Modelování příjmových závislostí ve spotřebitelské poptávce po mase a masných výrobcích (Models of income relationships in costumer demand for meat and meat products). Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 50 (6): 17-28; ISSN 1211-8516.
- Tvrdoň J. (1999): Ekonometrie (Econometrics). PEF ČZU, Praha; ISBN 80-213-04282-0.
- Wohlegenant M.K., Hann W.F. (1982): Dynamic adjustment in monthly consumer demand for meats. American Journal of Agricultural Economics, 64 (3): 553-557; ISSN 00029092.
Go to original source...
This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.