Food Expenditures in Latvia: Analysis from the First Year of Reform

Ferdaus Hossain, Helen H. Jensen
December 1994  [94-BR 19]

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Hossain, F. and H.H. Jensen. 1994. "Food Expenditures in Latvia: Analysis from the First Year of Reform." CARD paper 94-BR 19. Center for Agricultural and Rural Development, Iowa State University.


The 1991 Latvia household budget survey provided data for establishing basic information about food consumption levels and patterns in Latvia during the first year of major economic reforms. This study uses the 1991 data to examine the importance of income and household composition on food expenditures. Food expenditures represented a major share of household expenditures. Estimated income elasticities for various food commodities suggest the magnitude of changes in real household income that have occurred in Latvia. With relatively low income elasticities (estimated from the 1991 data), declines in household income would not be met by significant reductions in food expenditures, suggesting greater reductions in expenditures on other goods.