ESTIMATION OF THE FOOD DEMAND IN PAKISTAN: WORKING-LESSER APPROACH

Abstract

In the estimation of parametric Model , the most important issue preferred by the researchers, is regression for a single equation In most of the studies in Pakistan , different models like almost ideal demand system (AIDS), and its linear approximate version (LA/ AIDS) and the linear expenditure system (LES) have been estimated in order to predict food demand in future In these studies the factors which have enormous effects are traditional economic variables can lead to biased estimates of income effects and resultantly biased projections of food demand However to overcome this problem Working’s model measures several socioeconomic variables., the age of household head, Adult equivalent Age, years of schooling of household head ,simultaneously, the employment and industrial status have been measured Working’s model, more mathematical and flexible in nature, that generates demand equations by defining the total differential equation for each food product. The results indicate that all factors have a significant impact on all food items, but not in same manner Like Adult-equivalent and log of Monthly Food expenditure, are significant for all food items. However, Milk, Sugar and Vegetables are the food items which are not affected by the majority of these socio economic factors