Estimation of Nutrients Elasticity Using Cointegration Technique

In this paper using nutrients elasticity tools, consumer behavior of urban and rural area was surveyed in long run and short run during 1981-2005. To calculate nutrients elasticity (as a main purpose of this paper), we use Huang and Lin demand model (2001) and Lan-Caster s consumption technology equation. Finally N=S*D matrix was employed to calculate nutrients elasticity, where N contained nutrients elasticity values (related to income variations), S also indicated the percentage of a specific nutrients in each food and D defined the demand elasticity matrix. According to subgroup of food incomeelasticity, we suggest to subsidize “bread, grains and their products” and also “milk and its products and egg” to enhance the quality level of consumption pattern of urban and rural areas. Also price elasticity of meat subgroups price is highest in urban societies and according to the lack of consumption effects of it, governmental implementation ofsupporting programs will be necessary.The result of income elasticity of nutrients shows that the more costs taken in each subgroup of foodstuff, the more is consumption ofnutrients consumption.