Comparison of coherent demand systems: //The case of meat demand in the Czech Republic
|Author:||Mgr. Karolína Dlasková|
|Year:||2017 - winter|
|Leaders:|| Mgr. Milan Ščasný PhD.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||There are many models used to estimate demand elasticities. We present a complex review of
these studies in our thesis. Our empirical goal is to compare LES, Translog and QUAIDS
demand systems according to their performance. In parallel, we estimate the elasticities of meat
demand in the Czech Republic for the period 2010 – 2015 using the data of the household
budget survey. Comparing the systems by the Akaike and Schwarz criterion, LES demonstrates
the best fit for this kind of data. The average of price elasticity for different kinds of meat in the
examined period is -0.99, income elasticity then equals to 1.12. These results can have
important implications for tax policy, or for commercial use.