Estimation of Meat and Fish Demand System in Vietnam: An Application of the Almost Ideal Demand System Analysis

Abstract

This study reports the results of Vietnam?s meat and fish consumption demand analysis using AIDS models. It uses cross-sectional data (VHLSS2008) collected by General Statistics Office of Vietnam in 2008. The censored regression method for the system of equations was used to analyze meat and fish consumption patterns. The two-step demand system was estimated. In the first stage, Inverse Mill Ratio (IMR) was estimated by using the probit regression model. In the second stage, the IMR calculated previously was included in the AIDS model to estimate demand elasticities for meat and fish, based on a system approach. Meanwhile, with the estimation results, some suggestions about food policy are made. The homogeneity and symmetry restrictions were imposed on the estimated models. Coefficients of the estimated model were used to calculate expenditure and price elasticities. The results revealed that the demand for pork, chicken and fish is elastic while that for beef is inelastic. The cross-price elasticities show that beef, chicken and fish substitute for pork. The elasticities confirm that pork is necessity commodity while beef, chicken and fish are luxury goods.http://jabes.ueh.edu.vn/Home/SearchArticle?article_Id=843937bb-e2bb-4abd-a644-e36dba9dbcfd