An Econometric Study on Meat Demand in Libya with Almost Ideal Demand System (AIDS)‎

Abstract

The aim of this paper is to estimate the demand for meat in Libya over the period 1990 to 2010. Using the almost ideal demand system (AIDS), by seemingly unrelated regression (SUR). The main results of this paper show that the demand price elasticity for all commodities is inelastic. Further, the paper shows that the cross price elasticity for red meat, poultry meat and fish meat are complementary goods. The value of expenditure elasticity of red meat is increase more than income which suggests that the red meat is luxury good. Others, poultry meat and fish meat are necessary goods.

Key words: Libya, meat consumption, meat expenditure, almost ideal demand system.