SPANISH FOOD DEMAND - A DYNAMIC APPROACH

Other empirical works have demonstrated that Spanish food demand seems to have a dynamic structure. However, the commonly used dynamization processes are too restrictive to explain the dynamic food consumers' b ehaviour. A more general model that is able to incorporate different d ynamic structures (partial adjustment, first autoregressive, and stati c) and allows for direct estimation of long-run coefficients has been used. This general framework is applied to the Generalized Addilog Dem and System (GADS) for annual Spanish data covering 1964 to 1991. Resul ts indicate that an autoregressive GADS fits well the data, satisfying the theoretic restrictions. Finally, the expenditure and price elasti cities are calculated.