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This chapter reviews the specification and application of the Deaton and Muellbauer's (1980) almost ideal demand system (AIDS) and the Christensen et al. (1975) translog (TL) demand system. In so doing we examine various refinements to these models, including ways of incorporating demographic effects, methods by which curvature conditions can be imposed, and issues associated with incorporating structural change and seasonal effects. We also review methods for adjusting for autocorrelation in the models' residuals. A set of empirical examples for the AIDS and the log TL version of the translog based on historical meat price and consumption data for the United States are also presented.

The purpose of this paper is to examine the impact of socio‐economic variables on households' food demand. This paper derived the indirect utility function in terms of expenditure and price through the use of nonlinear demand quadratic almost ideal demand system (QUAIDS) model to estimate price, expenditure and elasticities of food items consumed in the North‐Central, Nigeria, and the impact of the socio‐economic variables on households' food demand.

The primary data used came from random selection of 396 households between 2006 and 2007 through a stratified random sampling procedure from Kwara and Kogi states making up the North Central zone in Nigeria.

All own price elasticities of the six food groups analyzed (root and tubers – RT, cereal – CR, legume – LG, animal protein – AP, fruits and vegetable – FV, fats and oil) showed that they are price inelastic. The results of income elasticity show that AP consumption is the most sensitive to income changes, while fats and oil is the least sensitive to income changes. Factors that positively and significantly affected demand for LG, FV, AP, CR and RT were household size (HSZ), level of education, primary occupation, access to credit, presence of children ≤6 years mainly at P<0.01. HSZ (P<0.01) negatively affected demand for AP.

This paper is original and novel in that it examines the impact of socio‐economic variables on households' food demand. High‐income elasticities of demand for all the food groups in QUAIDS except fruits and vegetable, as well as fats and oils, suggests that income‐generating policies will foster higher levels of consumption for these commodities.

The main objective of this paper is to analyze patterns of consumption expenditure and the effects of income, prices and socioeconomic and demographic factors on demand among elderly- and young-adult-headed households in Brazil.

The authors estimated a Quadratic Almost Ideal Demand System demand system using the main household consumption good groups – food, housing, clothing, transportation, health care and other expenses – with data from three Brazilian Household Budget surveys.

The study results showed that elderly- and young-adult-headed households have different consumption patterns. The consumption of food, transportation and health care was more price-sensitive for households headed by the elderly, while higher income increases health care expenses in elderly-headed households to a greater extent than it does in younger-headed households.

The limitations are due to the structure of the data used, such as the effects of seasonality and individualized demand analyses, and sample design in the estimates. However, due to the structure of the demand models, which when estimating by seemingly unrelated regressions do not allow to take into account the sample design.

As a consequence of population aging, the Brazilian economy will experience changes in the composition of household consumption, mainly for food, housing, transportation and health-care-related products.

This paper fulfills the lack of studies that analyze the consumption patterns and how demand varies across different types of elderly-headed households in a developing country, such as Brazil.

Geographical indications (GIs) provide a strong differentiation tool for firms. Whether this statement is confirmed at aggregate level in terms of market independence of different GIs is not tested yet. The purpose of this paper is to provide demand estimates and elasticities (own‐price and substitution) in order to test this hypothesis and verify the differentiation effect of GIs at aggregate level.

The analysis consists of the application of a quadratic almost ideal demand on a four equation system. Estimates are obtained through an iterated version of a generalized method of moments, which corrects for endogeneity determined by expenditure and prices in case of promotional activities.

Estimates prove the existence of a differentiation effect of GIs in terms of magnitude of elasticities and substitution effects. GIs corresponding to higher quality generate lower price sensitiveness and product substitution, contrarily to wine without GI. Controlled origin denomination (DOC) wine demand results are price sensitive and they substitute for wines of different GI. Controlled and guaranteed origin denomination (DOCG) is the most profitable GI. In fact, because of its inelastic demand, DOCG price could be potentially increased, to a certain extent, without having significant effects on volumes consumed.

Foreign wine should also be included in the demand system in order to understand the whole Italian wine market. Data concern retail level demand. The whole market, including hotels, restaurants and catering, should be included to offer a wider set of implications.

Marketers and producers could use the information provided by the estimates in order to forecast Italian wine demand. Elasticities and substitution effect provide them with a precise measure of consumers' price sensitiveness, which would be beneficial for their pricing strategies.

The paper provides, for the first time, estimates of a demand system relative to GI differentiated Italian wine.

The purpose of this paper is to estimate the elasticities of demand for different dairy products, such as fresh milk, powdered milk and yoghourt, in urban China.

The household survey data are drawn from the annual Urban Household Survey in a Chinese province from 2007 to 2009 by applying a three-stage budgeting approach with zero consumption.

The major findings show that fluid milk is the most popular dairy product among urban households in Guangdong province, China. Demand for fresh milk is price elastic with the highest value being −1.043, indicating that price-cutting promotion programs could be carried out by dairy enterprises to increase dairy consumption. With improvements in the living standards, the demand for dairy will lead to an expansion in the size of the dairy market and will simultaneously open up new development opportunities for dairy enterprises.

This study adopts an Almost Ideal Demand System model inserted into inverse Mills ratios in the third stage to resolve the common problem of obtaining censored data on zero consumption observations. The research findings will provide a reference for policy makers and for enterprises in developing some price-cutting promotion programs.

This chapter is an up-to-date survey of the state-of-the art in consumer demand analysis. We review (and evaluate) advances in a number of related areas, in the spirit of the recent survey paper by Barnett and Serletis (2008). In doing so, we only deal with consumer choice in a static framework, ignoring a number of important issues, such as, the effects of demographic or other variables that affect demand, welfare comparisons across households (equivalence scales), and the many issues concerning aggregation across consumers.

This paper aims to provide empirical insight into the trends and structural changes in meat consumption in Vietnam.

This study applies the Quadratic Almost Ideal Demand System model on multiple cross-sectional data sets derived from the Vietnam Household Living Standards Survey (VHLSS) of 2004–2016 and follows a consistent two-step procedure to deal with the zero consumption issue. The estimated demand elasticities are then compared and analyzed over time.

The empirical results show that in the last decade, meat consumption patterns in Vietnam have undergone a remarkable structural change, with poultry and beef increasingly taking important roles in the meat consumption structure of households. In addition, demographic characteristics, including settlement type, household size and the age of the household head, have significantly influenced meat expenditure patterns in Vietnam.

The paper considers the demand for meat consumed at home but not meat consumed away from home.

In many developing countries, increased disposable income, together with rapid urbanization and international integration, has significantly changed consumers' food consumption behaviors. This is one of the first studies using household survey data, which permits the exploration of heterogeneous preferences between consumers, to explore structural changes in food consumption patterns in Vietnam.

This chapter presents the indirect preferences for all full rank Gorman and Lewbel demand systems. Each member in this class of demand models is a generalized quadratic expenditure system (GQES). This representation allows applied researchers to choose a small number of price indices and a function of income to specify any exactly aggregable demand system, without the need to revisit the questions of integrability of the demand equations or the implied form and structure of indirect preferences. This characterization also allows for the calculation of exact welfare measures for consumers, either in the aggregate or for specific classes of individuals, and other valuations of interest to applied researchers.