Measuring the Welfare Impacts of Meat Price Increases on Iranian Household

The purpose of this paper is measuring and analyzing the impacts of meat price changes on consumer’s welfare. First، the Almost Ideal Demand System (AIDS) was estimated for meats in urban household in 1984-2009 years. Then، Compensating Variation (CV) criterion was computed to measuring the consumer’s welfare changes based on Taylor series expansion method and the results from the estimated AIDS model. Finally، the urban households’ welfare loss due to the meats price increasing was measured for the period of 2006-2009. Results showed that the chicken and beef are necessary and the fish and mutton are luxury goods for Iranian households. The results of the CV computing indicated that in this period، the Iranian households were lost 19 percentage of annual expenditure spending to the meat group in this period.