This study reports the results of Vietnam’s meat and fish consumption demand analysis using AIDS models. It uses cross-sectional data collected by General Statistics Office of Vietnam in 2008. The censored regression method for the system of equations was used to analyze meat and fish consumption patterns. The twostep demand system was estimated. In the first stage, Inverse Mill Ratio (IMR) was estimated by using the probit regression model. | JED October 2012 |57 Estimation of Meat and Fish Demand System in Vietnam: An Application of the Almost Ideal Demand System Analysis NGUYỄN TRỌNG HOÀI * Associate Professor, Doctor of Philosophy, UEH Email: hoaianh@ PHẠM THÀNH THÁI ** Master of Economics, Nha Trang University. Email: thaiktdhts@ ABSTRACT This study reports the results of Vietnam’s meat and fish consumption demand analysis using AIDS models. It uses cross-sectional data (VHLSS2008) collected by General Statistics Office of Vietnam in 2008. The censored regression method for the system of equations was used to analyze meat and fish consumption patterns. The twostep demand system was estimated. In the first stage, Inverse Mill Ratio (IMR) was estimated by using the probit regression model. In the second stage, the IMR calculated previously was included in the AIDS model to estimate demand elasticities for meat and fish, based on a system approach. Meanwhile, with the estimation results, some suggestions about food policy are made. The homogeneity and symmetry restrictions were imposed on the estimated models. Coefficients of the estimated model were used to calculate expenditure and price elasticities. The results revealed that the demand for pork, chicken and fish is elastic while that for beef is inelastic. The crossprice elasticities show that beef, chicken and fish substitute for pork. The elasticities confirm that pork is necessity commodity while beef, chicken and fish are luxury goods. Keywords: meat and fish demand, elasticities, censored regression, LA/AIDS, Vietnam. 58 | Nguyễn Trọng Hoài & Phạm Thành Thái Estimation of Meat and Fish Demand System 1. INTRODUCTION Consumption demand analysis is one of the most common topics in applied economics. Previous researches often used single equation model to estimate consumers’ goods demand. Besides, characteristics of the mentioned single equation model are mainly for estimating elasticities and little attention is .
