Households’ Demand in Albania: Measuring the Effects of Income and Price Shocks to Consumer Demand using Micro Data

This paper applies a Quadratic Almost Ideal Demand System in Albanian pooled cross-sections data of almost 9000 households for the period 2005-2012. We bring together a comprehensive demand system composed of eight commodity groups matching the Institute of Statistics’ ECOICOP good classification: food, alcohol and tobacco, clothing, utilities, household goods, transportation, entertainment and other goods to obtain income compensated, uncompensated and cross-price price elasticities for each of these commodities.