can you please solve this case study? this case as mentioned in the book.

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This is a case study from the course called: Managerial Economics for masters degree

I need the writer to study the case, summarize it and answer the questions if there is any question, then link them all of that with the chapter topic which is:

Demand Estimation and Forecasting

Case Title: GLOBAL APPLICATION: FOOD IN SPAIN, CIGARETTES IN TAIWAN

Example 1: Regression Analysis of Basic Foods in Spain

A time series study of the demand for six classes of food for the period 1964 to 1991 in Spain was performed. The six different classifications were

1. Bread and cereals

2. Meat

3. Fish

4. Milk, dairy products, and eggs

5. Fruits, vegetables, and potatoes

6. Fats and oils

The results show that changes in food demand (in terms of calories consumed) do not depend only on current income and prices, but also on lagged values of these variables. Consumers of food in Spain do not immediately adjust their expenditures when incomes or prices change. Rather they appear to show a certain level of inertia. Of the above six categories, only meat is shown to be a superior good, with an income elasticity of 1.54. Among the other five groups, only fruits and vegetables have income elasticity close to unity (.9), while the elasticity of fats and oils is the lowest, at 0.35. In terms of own price elasticities, meat shows the highest coefficient of 0.8. All the others are also negative; all have t-test results that are significantly different from zero. Most cross-elasticities are quite low and not statistically significant, showing that there is no great substitutability among these products. There are a few exceptions, the largest one being fish and meat, whose t-test result is significant. The R2 for the equation is a relatively high 0.63.

Example 2: Regression Analysis of the Demand for Cigarettes in Taiwan A recent time series study investigated the demand for cigarettes in Taiwan, not only as a function of income and price but also looked into the influence of antismoking campaigns and the impact of the opening of Taiwans market to imported cigarettes. Data for 30 years (19661995) were used. The basic estimating equation was written as follows:

Ct = a0 +a1Pt + a2Yt + a3Ht + a4Xt + et

Where:

Ct = Annual cigarette consumption per capita,

Pt = Average retail price of cigarettes per pack,

Yt = Disposable income per capita, in 1991 New Taiwan dollars,

Ht = Measure of smoke-related health information,

Xt = Other determinants,

et =Random error term,

and a04 = Regression coefficients

In addition, separate demand functions were estimated for domestic and imported cigarettes. The equations used in these calculations were similar to the previous one, except that one term was added to each equation. In the domestic cigarette demand equation, the price of imported cigarettes was included to measure cross-price elasticity. In the equation for imported cigarettes, the price of domestic cigarettes was included. Two measures of health information were used:

1. Market share of low-tar cigarettes

2. Strongly worded warning labels adopted in 1992. A dummy variable of 0 up to 1991 and 1 thereafter was employed.

Some of the other explanatory variables included lagged consumption, market share of imported cigarettes, and female labor force participation.

The results for the overall model were as follows:

Price elasticity 0.5 to 0.6

Income elasticity 0.14 to 0.22

Low-tar impact 0.04

All three of these had statistically significant coefficients at the 1 percent or 5 percent level. The effect of warning labels was also negative but not statistically significant, and the impact of imported cigarettes was positive but only significant at the 10 percent level in some of the models.

When domestic and imported cigarettes were considered separately, the results were similar. The cross-price elasticities in both equations were positive, indicating that domestic and imported cigarettes are substitutes. The coefficients of determination for the various models were quite satisfactory. They were approximately 0.91 for the overall equations and 0.71 to 0.88 for the equations in which domestic and imported cigarettes were studied separately.