Estimation Of Demand System In An Aids Model:The Opportunity For Exporting Thai Agricultural Products

  • Waripas Jiumpanyarach Chulalongkorn University
Keywords: Agricultural Products, Almost Ideal Demand System (Aids), Biofuel Policy, Changed Price, Expenditure, Energy Plants


This paper reports the results of the estimation of Almost Ideal Demand System(AIDS) model is developed to estimate quantity respond based on price. Five major export agricultural products data from the office of Agricultural Economics, Thailand and Biofuel policy from the office of the National Economic and Social Development Broad were used. The AIDS model estimatesdemand of palm, cassava, and sugar are highly response to changed price. Rubber and rice has less response to the changed price. All of major agricultural products are affect expenditure of Thailand export. This result suggest that the opportunity for increasing supply of energy plants, which benefits to Thai farmer communities for expanding market share in energy plants in domestic and global market.


Alston, J.M., K.A. Foster, and R.D. Greene.“Estimating Elasticity with the linear Approximate Almost Ideal Demand System: Some Monte Carlo Results.”The review of Economics and Statistics (1994): 351-355.

Barten, A. P. “The systems of consumer Demand Function Approach: A Review.” Econometrica. 45(1977): 23-48.

Brown, M.G. “Impact of income on Price and Income Responses in the Differential Demand

system.” Journal of Agricultural and Applied Economics, 40:2 (2008): 593-608.

Deaton, A., and J. Muellbauer “An Almost Ideal Demand System.”The American

Economic Review 70 (1980): 312-326.

Dhar, T., and J. D. Foltz. “Milk by Other Name Consumer Benefits From Labeled Milk.” American Journal of Agricultural Economics 87 (2005): 217-228.

Dimitri, C., and C. Green.Recent Growth Patterns in the US Organic Foods Market.Economic Research Service, U.S. Department of agriculture, June 2000.

Dimitri, C., C. Green., and C. Greene. Organic Marketing Features Fresh Foods and Direct Exchange. Food Review, January- April 2001.

Eales, J. S., and L. J. Unnevehr.“Simultaneity and Structural Change in U.S. Meat Demand.”American Journal of Agricultural Economics 75 (1993): 259-268.

Eales, J. S., and L. J. Unnevehr. “Demand for Beef and Chicken Products: Saparabilityand Structural Change.” American Journal of Agricultural Economics (1988): 521-532.

FAO, Agricultural products 1997-2007

Glaser, L. K., and G.D. Thompson. “Demand for Organic and Conventional Beverage Milk.” Paper presented at the Western Agricultural Economics Association Annual Meeting, Vancouver, British Columbia, 29 June-1 July, 2000.

Griffiths, W. E., R. C. Hill, and G. G. Judge.Learning and Practing Econometrics, John Wiley

& Sons, Inc., 1992.

Jabarin, A. S. “Estimation of meat demand system in Jordan: an almost ideal demand system”

International Journal of Consumer Studies 29:3 (2005): 232-238.

Le, C. Q. “An Empirical Study of Food Demand in Vietnam” ASEAN Economic Bulletin 25:3(2008): 283-292.

Moschini, G. “Units of Measurement and the Stone Index in Demand System Estimation.”

American Journal of Agricultural Economics 77 (1995): 63-68.

Pacific food system outlook, 2009-2010.

The office of National Economic and Social Development Broad, Thailand, 2002 – 2010.

The office of Agricultural Economics, Ministry of Agricultural and Cooperative, Thailand,

– 2010.

Rangkakulnuwat, P. “The analysis of Demand System for agricultural Export Products in Thailand Using LAIDS” NIDA Development Journal 48(3) (2008) 48-61.

Sheng, T. Y., M. N. Shamsudin, and et. al. “A Complete Demand System of Food in Malaysia”

The Icfai University Journal of Agricultural Economics 5: 3 (2008): 17- 29.

Sakong, Y. and Hayes, D. J., “Testing the Stability of Preferences: A Nonparametric Approach”

American Journal of Agriculture Economic 75 (1993): 269-277.