Assessing the Demand for Food in Europe by the Year 2010


Leon Podkaminer

wiiw Working Paper No. 28, March 2004

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Data on household consumption provided by the European Comparison Project for 1999 are used to estimate the parameters of the cross-country Almost Ideal Demand System (AIDS) for two aggregates: food and non-food. The estimates are highly significant. AIDS specified with parameter estimates is used for assessing food demand in 2010. Four alternative price trends are considered, each assuming 2% real per capita income growth p.a. in Western Europe and 4% in 12 EU accession countries (ACs). Food consumption will be rising 2.6% p.a. in ACs, and the ACs' share in all-Europe food consumption will increase from 13.6% (1999) to 16-17% (2010).


Keywords: cross-country demand functions, Almost Ideal Demand System, food consumption, European Comparison Project

JEL classification: R22, C53, D12, Q11

Countries covered: European Union, New EU Member States

Research Areas: Macroeconomic Analysis and Policy