Demand analyses of food in Malaysia: Effects of model specification and demographic variables

Abstract

Demand analyses of food are deemed important to provide up-to-date indications of the demand behavior in future. This study is to determine which the model specification, as well as analyze the effects of demographic and socio-economic factors on of food demand in Malaysia. Household Expenditure Survey 2004/2005 data is analyzed by using Working Leser, Linear Engel model (LEM), Quadratic Engel model (QEM), and Linear Approximate Demand System (LA/AIDS). The empirical shows that LEM and QEM provide better results, in term of adjusted R2 and rationality of expenditure elasticities. Also, demographic variables improve the performance of all the selected models.demand analyses, food, Malaysia, expenditure elasticity