An Investigation of Demand For The Major Food Groups In Urban Areas Of Iran
In this article, we examine the major food groups demand in urban areas of Iran for the period 1361 to 1386 by almost ideal demand system, Laspyres Price Index and using Seemingly Unrelated Regression(SUR). In this study, was included mean population of family, with commodities price index and real expenditure(income) of families, as independent variable, in equations system. The resultes showed that the mean population of family, in the most of equations, had significant effect on family demand. Also, homogeneity and symmetry restrictions has been tested. Results show that all of groups have negative own-price elasticities and the exception of meat, dried fruit, oils and fats and sugar and its products, the other groups are inelastic and among of them, grain is most inelastic and dried fruits is most elastic. Therefore, the government can use pricing policies in long time, in demand good management and correction of consumption model for given groups that them consumption have high elasticity then them price changes. Cereal and its products, bread, egg are necessary groups in food basket of urban families, too and sudden cut of subsidy of the groups isn’t nice and is offered scaledown of it. Meat, fresh fruits and vegetables are luxury and grain is inferior.
Journal of Economics and Agricultural Development, Volume:25 Issue:1, 2011
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