Abstract

RAMIREZ TINOCO, Jesús et al. An almost ideal demand system (AIDS) applied to beef, pork and chicken cuts, eggs and tortillas in Mexico for the period 1995-2008. Rev. mex. de cienc. pecuarias [online]. 2011, vol.2, n.1, pp.39-51. ISSN 2448-6698.

Marshallian and Hicksian demand elasticity for different products, such as beef steaks and special cuts, pork steaks, ham and ground meat, whole chicken, eggs and tortillas were estimated in this study. To this end, an Almost Ideal Demand System (AIDS) was estimated through seemingly unrelated regressions (SUR), applying a "Stone" price index. In accordance with results of Marshallian own and Hicksian own price elasticities, 11 of the 12 analyzed products obtained values less than 1, that is to say, inelastic. In the specific cases of cross-price elasticity, the following combinations resulted in substitutes: beef steak with beef special cuts; pork (steak, ham, and ground) with whole chicken; and beef special cuts with pork. Tortillas can be visualized as a complement to all cuts and to eggs, and income elasticities indicate that meats and eggs can be considered as normal necessary goods. The AIDS model is used to predict changes in demand, so, if prices in the studied products increase by 10 %, a decrease of 7.4 % in beef steaks, 7.7 % in beef special cuts and 4.7 % in whole chicken, can be expected. The least affected products were pork (steak, ham, and ground) and eggs, whose demand would diminish by 2 and 0.2 %, respectively.

Keywords : Marshallian Elasticity; Hicksian Elasticity; Demand; "Stone" Index.

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