Income disparities and their impact on the level and development of food expenditures of households in Slovakia

Abstract

Paper evaluates development and changes in the level of households food expenditures in Slovakia, which occurred after the accession of Slovakia to the European Union in 2004 and began to apply the rules of the Common Agricultural Policy and using of means of support. Free movement of goods, labor and capital has contributed to the increase of goods and services supply and living standards as well as to the increase in households income differentiation. Until 2012, households in the lowest income quartile possess on average with only 34.1 % per year of the revenue compared with income in the highest fourth quartile of income category. The results of the analysis show a different behavior in the food market. Most sensitive to the change in income and price levels of food expenditures for food responded in families with the lowest incomes (EI = 0.28). With the increase in prices of cereals (bread) by one percentage unit-demand declined by an average by 0.49 % (Epi = −0.49), the demand for cheese by 0.65 % (Epi = −0.654) and the demand for meat by 0.275 % (Epi = −0.275).