A system approach to the demand for salmon in the European Union

Abstract

This study addresses the demand for salmon in the European Union. A system of demand equations are specified with an almost ideal demand system (AIDS)to analyse the demand structure for fresh, frozen and smoked salmon, using quarterly data for the period 1984–92. The time series porperties of the data series are explored, and the data series are found to be non-stationary, but cointegrated. To avoid the invalild inference and spurious regression problems that may be created by non-stationary data series,the fully modified least squares (FMLS) estimatior is utilized.