Estimation of Demand for Red Meat in Iran

The present article deals with estimation of demand for red meat in Iran during 1977-2003 using ARDL approach. The findings of the research show that red meat in short run is elastic with respect to own price, while it is inelastic in long run. Income elasticity indicates that red meat is elastic both in short and long run, though it is more elastic in long run than short run. Cross-price elasticity of demand for red and white (chicken and fish) meat is positive indicating a substitute relationship. The long-run elasticity of the substitution relationship is stronger in long run than short run. The result from ECM shows that the adjustment coefficient is −0.58; i.e., about 58 percent is adjusted towards the long-run equilibrium within a year.