Abstract

We estimate a food demand system for Slovakia using a recent Household
Budget Survey data collected by the Slovak statistical office covering the period
2004 – 2010. The Quadratic Almost Ideal Demand System (QUAIDS) augmented
with demographic, regional and expenditure controls is employed based on preliminary
non-parametric Engel curve analysis. Results indicate that demand for
dairy products and fruits and vegetables is expenditure and own-price elastic
indicating that such goods are perceived as luxuries. On the other hand, commodity
bundles such as cereals, meat and fish and other food are found to be
normal goods with positive budget elasticity smaller than one and price inelastic
demand. Rural and low-income households appear more expenditure and, especially,
price sensitive compared with the urban and high-income ones. Overall
the food consumption patterns changed and food security situation improved in
Slovakia between 2004 and 2010.