Analysing food expenditure using demographic variables: microdata evidence from Italy

In this paper, the effects of some sociodemographic variables on food expenditure in Italy are evaluated. To do that, a two-stage demand model is employed, including a first stage where total expenditure allocation is analysed by means of Working’s Engel model and a second stage where a complete demand system, the AIDS (Almost Ideal Demand System) model of food demand, is estimated. The empirical analysis of this paper is based on household data, collected by ISTAT (Italian Central Bureau of Statistics), in the year 2000 (Family Budget Data).