Estimation of Expenditure and Price Elasticities with an Almost Ideal Demand System

In this study, Turkish consumer behaviors models for Turkey, urban and rural districtions are made an analysis by estimating income and price elasticities for food and non-alcoholic beverages group by applying An Almost Ideal Demand System. Household income and consumption expenditure data between 2002-2006 years are used. Expenditure and price elasticities under food and non-alcoholic beverages group are estimated within the framework of the almost ideal demand system approach in Turkey was analyzed. Expenditure elasticities for Turkey, urban and rural were calculated and respectively 0.975, 0.961 ve 0.992. According to Turkey, urban and rural, values of expenditure elasticities are obtained almost the same.