Year of Graduation
Consumer Demand of Russian Households Under Economic Sanctions
The aim of this work is to study the changes in consumer demand for food products associated with food embargo. The relevance of the study is due to the shortage of works devoted to the consequences of food sanctions for Russian consumers. In the study there is an econometric model based on the QUAIDS and Working-Lesser models used. Also, ther work shows a method to solve the problem of the endogenity in individual purchase prices. The results demonstrate that the introduction of an import ban caused structural shifts in price and income elasticities, which can be explained by for lower quality together with hogher prices and fall in the demand for luxury goods, because of the low ruble exchange rate and overall economic instability. Nevertheless, a more thorough analysis showed that population with their own farms were protected from negative consequences, and by 2015, the indicators for the whole population started to get closer to their initial values. In this regard, we can say that the import substitution has a chance of success, but only if the quality and the variety of food products are improved.