Estimating the Food Price and Income Elasticities in Tehran Urban Households

Subject Areas : Labor and Demographic Economics

vida  varahrami ¹ (استادیار اقتصاد دانشگاه شهید بهشتی)
zohreh  hoshmand ² (کارشناس ارشد اقتصاد)
reza  yousefi haji absd ³ (استادیار اقتصاد انشگاه پیام نور)

Received: 2016-05-03 Accepted : 2016-05-03 Published : 2016-05-01

Keywords: Seemingly Unrelated Regression, H31, JEL Classification: D91, B23 Keywords: Consumer Behavior, Elasticity of Demand, Combination Almost Ideal Demand System,

Abstract :

Abstract The aim of this research is to estimate the food price and income elasticities in urban household of Tehran province. For this purpose, the data of household food items in Tehran province used by different groups of household consumer goods are gathered and then handled as a combination of linear almost ideal demand system based on seemingly unrelated regression (SUR) during 2004- 2012. In this paper, the behavior of price and income elasticities has been studied in urban households. The overall results represent that cereals, dairy products and oils group are a part of essential commodities. Meats, fish and marine animals are luxury goods. Cross-price elasticities, in term of absolute value, are less than one in most cases. Auto-price elasticity of fish and marine animals is more than one unit. In other word, this group is a kind of elastic goods

References:

-       پرتوی، بامداد، رجایی، یدالله، امینی، صفیار و طهماسبیان، محمدرضا )1387(. تحلیل رفتار مصرفی مناطق شهری استان زنجان با استفاده از سیستم تقاضای تقریبا ایده آل. فصل نامه علمی پژوهشی مدلسازی اقتصادی،(17): 70- 95.

-       خسروی نژاد، علی‌اکبر، خداداد کاشی، فرهاد، صحبتی، زهرا (1392). ارزیابی افزایش قیمت مواد غذایی بر رفاه خانوارهای شهری ایران. مجله راهبرد اقتصادی،4(2):73-93.

-       رمضانی امیری، هاجر، بخشوده، محمد (1390). تاثیر تغییرات قیمت و در آمد بر الگوی مصرف برنج در شیراز. مجله تحقیقات اقتصاد کشاورزی،3 (11): 100-77.

-       مرکز آمار ایران. سالنامه استانی مرکز آمار. سالنامه آماری استان تهران، 1391-1383.

-       هوشمند، زهره (1393). بررسی رفتار مصرفی خانوارها: مطالعه موردی استان تهران. پایان نامه کارشناسی ارشد. دانشکده اقتصاد، دانشگاه آزاد اسلامی، واحد علوم و تحقیقات سمنان.   

-        Banks, J., Blundell, R. and Lewbel, A. (1997). Quadratic Engel Curves and Consumer Demand, The Review of Economics and Statistics: 527-539.

-        Barten, A. P., (1968). Estimating Demand Equations, Econornetrica, : 213-251.

-        Christensen, L.R., Jorgenson, D.W., Lau, L.J., (1975). Transcendental logarithmic utility Functions. The American Economic Review:367-383.

-        Deaton, A, .and Muellboure, J. (1980). An Almost Ideal Demand System, American Economics Review: 312-326.

-        Denton, F. T. Mountain, D. C. (2004). Aggregation effects on price and expenditure elasticities in a quadratic almost ideal demand system, Canadian Journal of Economics / Revue Canadienne d’Economique:  613–628.

-        Diwert, W.E., (1971). An application of Shepherd duality theorem: a generalized Leontief production function, Journal of Political Economy: 481-507.

-        Gamaletsos, T., (1974). A Generalized Linear Expenditure System, Applied Economics, 6: 59-72.

-        Gorman, W. M. (1981). The Concavity of Additive Utility Functions, Unpublished typescript, University of North Carolina. Reprinted as Chapter 9 in C. Blackorby and A. F. Shorrocks, eds. Reparability and Aggregation: Collected Works of W. M. Gorman, Volume I Oxford: Clarendon Press. 199: 127-136.

-        Houthakker, H. S.,(1965). New Evidence on Demand Elasticities, Econometrica, 4: 10-13.

-        Lau, L.J., (1974). Applications of duality theory: A comment, In: Intriligator, M., Kendrick, D. (Eds.), Frontiers of Quantitative Economics, North Oland, Amsterdam. PP.176-199.

-        Leser, C. E. V., (1941). Family Budget Data and Price Elasticities of Demand, Review of Economic Studies: 40-57.

-        Lluch, C., and Williams. R., (1975). Consumer Demand Systems and Aggregate Consumption in the USA: An Application of the Extended Linear Expenditure System, The Canadian Journal of Economics / Revue comedienne d'Economique: 49-66.

-        Matsuda, T. (2006). Linear Approximations to the Quadratic Almost Ideal DemandSystem, Empirical economics: a journal of the Institute for Advanced Studies, Vienna, Austria.- Berlin. Springer, ISSN 0377-7332, ZDB-ID 5193941. p. 663-675.

-        Moro, D. and Sckokai, P. (1999). A QUADRATIC INVERSE DEMAND SYSTEM, American Agricultural Economics Association, Annual meeting, (http://ageconsearch.umn.edu/handle/35064).

-        Nyg˚ard, V.M. (2013). An almost ideal demand system analysis ofnon-durable consumption categories, revised version Thesis for the degree Master of Economic Theory and Econometrics Department of Economics University of Oslo. P. 96.

-        Parks, R. W., (1969). Systems of Demand Equations: an Empirical Comparison of Alternative Functional Forms, Econometrica: 629-650.

-        Pollack, R. A., (1970). Habit Formation and Dynamic Demand Functions, Journal of Political Economy: 745-763.

-        Stone, J. R. N., (1954). Linear Expenditure Systems and Demand Analysis: an Application tothe Pattern of British Demand, The Economic Journal: 511-527.

-        Theil, H.,"(1971). Principles of Econometrics, North Holland, Amsterdam, p.102.

-        Zhou, D. and Yu, x. and Herzfeld, T.(2014); Dynamic Food Demand in Urban China, RTG 1666 Global Food, Transformation of Global Agri-Food Systems: Trends, Driving Forces, and implications for Developing Countries, Georg-August-University of Göttingen, Heinrich Düker Weg 12 . 37073 Göttingen . Germany, (http://www.uni-goettingen.de/globalfood), ISSN (2192-3248).