Zastosowanie modelu LA/AIDS do badania elastyczności cenowych popytu konsumpcyjnego w gospodarstwach domowych w relacji miasto–wieś
The application of LA/AIDS model to examine price elasticities of demand of households in the urban-rural relationship

Summary/Abstract: This paper presents the usefulness of linear approximation of almost ideal demand system (LA/AIDS) to examine the price elasticities of demand for chosen groups of food. This research project is based on micro-economic data concerning individual Polish household budgets in 2006. The own and cross price elasticities of chosen groups of food were determined by estimated parameters of model equations. The research showed that price elasticity for foodstuffs were differentiated between urban and rural households and also according to the magnitude of locality in which a household was located.

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