Economics Graduate Program - Master Degree

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http://hdl.handle.net/11527/17505

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Yazar "Ecer, Sencer" ile Economics Graduate Program - Master Degree'a göz atma
  • Öge
    Estimation Of Food Demand In Turkey Using Quadratic Almost Ideal Demand System
    (Institute of Social Sciences, 2018) Kalay, Ali Furkan ; Ecer, Sencer ; 536975 ; Economics ; İktisat
    Demand estimation is crucial for people, companies, and governments. It is important not only for predicting the future quantities, but is also important to understand the consumer behaviour. Because, understanding the consumer behaviour helps to decision-making process. This thesis estimates the food demand in Turkey for the years between 2008 and 2016. Because, drastic increases in inflation rates in recent years is mostly attributed to the food prices. Besides, demand for food is relatively more inelastic compared to the other commodity groups. So, food demand in Turkey is an important subject for the welfare of the Turkish people. One can make inferences on the consumers' well-being by observing the revealed preferences which is a subject of the Microeconomic Theory. By understanding the Neoclassical Demand Theory, one can better understand the consumers' behaviours (and preferences). Therefore, I examine the Neoclassical Demand Theory before estimating the food demand in Turkey. I use Almost Ideal Demand System to estimate food demand, because it satisfies many desirable assumptions of the Neoclassical Demand Theory. However, I make estimations using Quadratic AIDS instead of AIDS. Because QUAIDS assumes that consumers have quadratic Engel Curve which is more appropriate for the demand systems. On the other hand, AIDS and QUAIDS are nonlinear models; but in order to make estimations faster, it is converted into a linear model called Linear Approximated AIDS. However, LA/AIDS has some econometric problems like endogeneity; therefore I estimate QUAIDS nonlinearly. One of the distinctive feature of this study is that I estimate food demand after aggregation of household surveys.