The Empirical Investigation of Rotterdam Demand System By Using Consumption Expenditures Data of Urban Households in West Azerbaijan Province

The functional form of the consumer allocation models should be tosatisfy theoretical derived from the consumer demand theory and must beable to explain the behavior of the consumer. In the first part of this paper,we have explained some of the theoretical characteristics of the consumerdemand theory. At the second part of this paper, an empirical study hastaken place by using consumption expenditures data of the urbanhouseholds in West Azerbaijan province during the period 1979-2003. Theresults show that restricted and unrestricted Rotterdam demand systemprovide homogenous restriction but unrestricted Rotterdam demand systemprovide symmetry restriction and no restricted Rotterdam demand system.