DEMAND FOR MEAT AND FISH PRODUCTS IN KOREA

where δ = 1 for i = j and δ = 0 otherwise. w_i is the average expenditure share. β_l and γ_lj are
parameter estimates. The variances of uncompensated and compensated price elasticities are
calculated by applying the variance operator as

(18)

(19)

Var( e,, ) = W_i Var (γ, ) +    Var( β ) - 2^ ɪj Cov(γ, β ),

^Var(ej *) = WT^Var(^γij ) .

The estimated variances are used to evaluate the statistical significance of the elasticities.

The expenditure elasticity can be computed as

(20)

ʌ

ηi- 1 +^βγ
w_l

The variance of expenditure elasticity is

(21)

1

V^ar (η_i) = wr V^{ar (} A).

W_l

Table 5 shows the calculated uncompensated elasticities at the sample mean. The
uncompensated own price elasticities of individual meat and fish products show a negative sign.
Own-price elasticities of all meat and fish are significant at the 5 percent level. The
uncompensated own-price elasticities of Hanwoo and imported beef are -1.1515 and -0.8987,

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