The Study of Iranian Urban Household's Consumption

One of the household's economic welfare indices is their quality of consumption commodities mixture during a given period. In Economics, the commodities are classified luxuries, necessities and inferiors by income elasticities of demand. When most of commodities in householdsconsumption basket are necessities and inferiors, the conditions of household's consumption are improved and its welfare is increased. In this article, we want to find "Are the consumption mixtures of urban households improved or disimproved during 1368-87 to 1351-67?" The used models of Engel curves are estimated by panel data during two periods. Then, income elasticities of demand of commodities are calculated. During 1351-67, Cereals products, Oil Fats, Tobacco products and Clothing and footwear were inferiors and the other commodities were necessities in urban householdsbaskets. But during 1368-87, Medical Care and Health Services, Transport and Communications, Recreation, Entertainment and Cultural Services were luxuries and other commodities were necessities. Since during 1368-87 some of the food commodities changed from inferiors into necessities and some non-food commodities have been changed into luxuries, thus we take a result that consumed condition and economic welfare of Iranian urban households have been worse during 1368-87 to1351-6