ECONOMETRIC ANALYSIS OF CEREAL DEMAND IN MOROCCO USING THE ALMOST IDEAL DEMAND SYSTEM
Following up the agricultural policy in Morocco and enforcing it, the new strategy Green Morocco Plan (GMP) launched in 2008 also stressed on the cereals’ supply. Meantime, despite their significant nutritional role, little attention has been paid to the demand side. This paper intends to perform...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
International Journal of Food and Agricultural Economics
2018-04-01
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| Series: | International Journal of Food and Agricultural Economics |
| Subjects: | |
| Online Access: | http://www.foodandagriculturejournal.com/Vol6.No1.pp63.pdf |
| Summary: | Following up the agricultural policy in Morocco and enforcing it, the new strategy Green
Morocco Plan (GMP) launched in 2008 also stressed on the cereals’ supply. Meantime,
despite their significant nutritional role, little attention has been paid to the demand side. This
paper intends to perform an econometric analysis of the demand of five main cereals -
Common wheat, Durum wheat, Barley, Corn and Rice- using a linear version of the flexible
Almost Ideal Demand System (LA/AIDS model). A Seemingly Unrelated Regression (SUR)
approach has been applied to the demand system equations with annual data covering the
period from 1980 to 2015. At the overall, regular econometric restrictions (stability, structural
separability, validity, etc.) have been respected our results suggest that the relations of
complementarity or substitution are not determining in the cereal bundle in Morocco. Also,
the Moroccan consumer behavior is characterized by a strong sensibility towards common
wheat price’s changes and by a difficult access for the durum wheat as it is considered as
luxury good. |
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| ISSN: | 2147-8988 2147-8988 |