In the case of the imported beef, parameters of pork and chicken prices are significant at
the 5 percent level, indicating that consumption of imported beef is sensitive to the prices of pork
and chicken. However, the consumption of Hanwoo beef is not sensitive to the prices of other
meats.
Most of seasonal dummy variables of meat (except pork) and fish products are significant
at the 5 percent level. The consumption of Hanwoo beef and imported beef increases in the
spring and fall, and decreases during the winter. Pork consumption increases in the winter, but
the increase is not statistically significant. The seasonality of chicken is significant at the 5
percent level, especially during the summer and fall. Fish consumption is greatest in winter.
Elasticities of Price and Expenditure
Parameter estimates of the LA/AIDS are used to calculate the price and expenditure
elasticities. Price elasticity is calculated in two ways; uncompensated elasticity that contains both
price and income effects, and compensated elasticity which includes only price effects.
Uncompensated and compensated price elasticities of the LA/AIDS are calculated with
the following equations, respectively:
^ f
(16)
(17)
γ,∙,∙ √ W,-
ejj = - δij + ~- βi I ■=■
j j wi ∖ wi
_ 4 Wi ^ Yiι —
eij *=eij+w1+β{ wfJ = - δij+wf+w
i,j= 1,2,...,n,
12