Analyzing the Food Basket of Rural Households in Iran

This study aimed generally at investigating and analyzing the consumption basket of rural households in different income deciles to achieve food security. For this purpose, the income deciles were initially divided into three general groups including the average of the first to third deciles as the first group, of the fourth to seventh deciles as the second group, and of the eighth to tenth deciles as the third group. Then, the Generalized Ordinary Differential Demand System (GODDS) was estimated using the integrated data of 2006-2017 in Seemingly Unrelated Regression Equations (SURE) method; and using Wald test, Almost Ideal Demand System (AIDS) function was selected as the appropriate functional form. The results of the price elasticity calculation showed that the price elasticity of food demand in rural areas was negative. It was also found that cereals and livestock meat as well as livestock and dairy products and sugar were complementary goods; cereals were known as the complementary goods for livestock, dairy products, and sugar; in addition, vegetables and pulses could be considered as substitutes for cereals in the rural areas. The calculation of income elasticity showed the positive values for food groups in the rural areas, indicating the normality of commodity groups. According to the results, the income elasticity of cereals, livestock, fish meat, shrimp and its products, dairy products, pulses and sugar was obtained a figure more than one, indicating that these foods were considered as the luxury goods.