A Systematic Analysis of the Effect of Civic Houses Real Expenditure Changes on the Share of New Automobile in Household Consumption Basket

The effect of effective variables on the share of new automobile in household consumption basket has been considered and analyzed in this research during 1991-2007 by using Almost Ideal Demand System. Results of estimating seemingly unrelated regression represents that the real expenditure changes of household, household dimension and cost changes of other goods will affect this share. The study of expenditure elasticity and price elasticity estimation, respectively, shows the luxuriousness and elasticity of automobile in Iran economy. The results of automobile cross-price elasticity estimation by other groups explain that automobile is an alternate to three groups of food, non-food and housing, that is, the increase of automobile price will cause to increase the expenditure of household basket in all three groups share. More importantly is the point that the two groups of food and housing are the complements to automobile.