Explaining Food Consumption Patterns in Greece

This paper decomposes observed changes in Greek food budget‐shares into three components: the total substitution effect, the budget (total expenditure) effect, and the habit effect. The analysis is based on a dynamic specification of the AIDS model. The empirical results indicate that (i) the effect(s) explaining the evolution of consumption patterns vary across food items and (ii) that accession to the EU increased the relative contribution of the total substitution effect.