DEMAND FOR DAIRY PRODUCTS IN SLOVAK HOUSEHOLDS: A DOUBLE-HURDLE APPROACH
DEMAND FOR DAIRY PRODUCTS IN SLOVAK HOUSEHOLDS: A DOUBLE-HURDLE APPROACH

Summary/Abstract: The dairy production has a longstanding tradition in Slovakia. Despitethe fact that situation has changed significantly in recent years and the share of milk production in the total agriculture production tends to decline, milk and milk productsstill represent a significant part of the food components of Slovak households. Thestudy presents the data on dairy sector balances, market structure and the econometric modelling techniques were used to estimate price elasticities of demand for cheese,skimmed and whole milk. Due to the nature of data obtained from the Household Budget Survey, we applied the Cragg’s double hurdle model, for the time period 2006 - 2012. The findings indicated that demand for whole milk is price elastic, forskimmed milk and cheese is price inelastic. The number of household members,mainly children, teenagers and retirees affect the consumption of milk positively andconsumption of cheese negatively.

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