Some Comments on the Estimation of Demand Relations for Poland

Pawlowski, Z. (1981). Some Comments on the Estimation of Demand Relations for Poland. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-81-067

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Abstract

Understanding the nature and dimensions of the world food problem and the policies available to alleviate it has been the focal point of the IIASA Food and Agriculture Program since it began in 1977.

National food systems are highly interdependent, and yet the major policy options exist at the national level. Therefore, to explore these options, it is necessary both to develop policy models for national economies and to link them together by trade and capital transfers. For greater realism the models in this scheme are being kept descriptive rather than normative. In the end it is proposed to link models to twenty countries, which together account for nearly 80 per cent of important agricultural attributes such as area, production, population, exports, imports and so on.

In the course of the work on the development of models of centrally planned economies, the difficulties of estimating parameters of consumer behavior in such economies where consumer markets cannot be assumed to be in equilibrium become apparent. Since the understanding of consumer behavior is critically important in formulating plans and designing policies that facilitate the realization of plans, we have explored alternative approaches to this problem. This paper proposes one possible approach to estimating consumer demand relations.

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