The Impacts of Beef Prices and VAT on Chicken Meat Consumption: A Partial Equilibrium Approach


Abstract: This study examines the impact of beef prices and taxes on chicken meat consumption in Turkey. The model presents a partial equilibrium approach for beef prices and chicken meat consumption in Turkey that can be used for simulation and forecasting. The structure of the model follows the vertical chain of the chicken meat sector, allowing equations for the supply, demand and net trade of chicken meat. The price, income, cross-price and tax elasticities of chicken meat were estimated to determine the impacts of beef prices and VAT. According to the analysis, for slaughtered chicken, the price elasticity was 0.37, the income elasticity was 0.95 and the elasticity of chicken meat/beef was - 0.81. The tax elasticity was -0.23. The simulation results show that chicken meat consumption will increase during the simulation periods in Turkey.

Keywords: Beef prices, chicken meat, simulation, chicken meat consumption, chicken meat supply

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