Factors Affecting the Expenditures of Consuming Non-durable Goods in Iran Economy

This study investigates the factors that influence the expenditure of consuming non-durable goods in the economy of Iran. the importance of non durable consumer goods in the basket of household caused to identify the factors affecting the consumption of these goods. By statistical time series during 1979-2007, a model was estimated by Vector Auto Regression method. Factors which affect the marginal expenditure of non durable goods include disposable income, wealth, inflation, index of durable goods to non-durable goods and the real interest rate. In this regard, information and data of the Central Bank of Islamic Republic of Iran were used. The results stated that by increasing the wealth and income, the consumption of non-durable goods will be increased. Also, any increase in the index of durable goods to non-durable goods will grow non-durable goods consumption.