Adjustments in Demand during Lithuania's Economic Transition

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1998-02-01
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Hossain, Ferdaus
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Jensen, Helen
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Center for Agricultural and Rural Development

The Center for Agricultural and Rural Development (CARD) conducts innovative public policy and economic research on agricultural, environmental, and food issues. CARD uniquely combines academic excellence with engagement and anticipatory thinking to inform and benefit society.

CARD researchers develop and apply economic theory, quantitative methods, and interdisciplinary approaches to create relevant knowledge. Communication efforts target state and federal policymakers; the research community; agricultural, food, and environmental groups; individual decision-makers; and international audiences.

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Significant economic changes have occurred in Lithuania since 1992. Major market reforms were introduced through phased liberalization of producer and consumer prices. In this study, panel data from a Lithuanian Household Budget Survey conducted during 1992-94 were used to estimate demand parameters for aggregated commodity groups. The researchers evaluated consumer demand behavior during the period of economic transition and assessed the effects of the economic changes on Lithuanian households.

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