Food Demand in Spain: An Application of the Almost Ideal System

This paper provides an analysis of food demand in Spain for the period 1964–1989 estimating the Almost Ideal Demand System (AIDS) with annual time‐series of food expenditures divided into six categories. A dynamic version of the model incorporating habit effects captures the behaviour of the Spanish food consumer over the period investigated. The theoretical hypotheses of homogeneity and symmetry are rejected, but the model provides plausible expenditure and price elasticities.