EXPLAINING FOOD-CONSUMPTION PATTERNS IN GREECE

This paper decomposes observed changes in Greek food budget-shares int o three components: the total substitution effect, the budget (total e xpenditure) effect, and the habit effect, The analysis is based on a d ynamic specification of the AIDS model, The empirical results indicate that (i) the effect(s) explaining the evolution of consumption patter ns vary across food items and (ii) that accession to the EU increased the relative contribution of the total substitution effect.