The Effect of Price Changes and Income on Rice Consumption Pattern in Shiraz

Subject Areas : Agricultural Economics Research

H. Ramezani Amiri ¹ (دانشجوی کارشناسی ارشد اقتصاد کشاورزی دانشگاه شیراز)
M. Bakhshoodeh ² (استاد اقتصاد کشاورزی دانشگاه شیراز)

Received: 2015-12-18 Accepted : 2015-12-18 Published : 2011-09-23

Keywords: Rice, Elasticity, Quadratic almost ideal demand system,

Abstract :

This study aims to determine the effects of income and price changes on consumption pattern of rice in Shiraz city. To achieve this objective, quadratic almost ideal demand system was used. Different varieties of rice, including Pakistani, Indian, Thai, and domestic rice (Tarom local, Daylamani Tarom, Amol 3, Fajr, Aurora, Kadvs, Caspian) were considered. Findings of the study showed that various varieties of domestic rice were substitutable, and also imported varieties of rice were substitutable, while relationship between domestic and imported rice was complementary. Consumers demand is related to their tastes and purchasing power. Analysis of demand indicated that people with the high income prefer to buy domestic rice, while low income consumers prefer to buy imported rice mainly due to its low price.  

References:

1.Abdulai, A., Jain D. K. and Sharma, A. K. 1999. Household Food

Demand in India. Journal of Agricultural Economics, 50 (2): 316-

327

2.Bakhshoodeh, M. 1995. Demand of meat in Iran. Proceedings of

the First Conference on Iran's agricultural economy. 2: 588-565.

3.Barykany, A., Shajari, Sh. and Amjadi, A. 2007. calculate elasticity

of price and income demand for food in Iran: using the almost

ideal demand system dynamic. Agriculture Economics and

Development. 15: 60-45.

4.Balcombe, K., Davidova, S. and Morrison, J. A.1999. Consumer

Behavior in a Country in Transition with a Strongly Contracting

Economy. The Case of Food Consumption in Bulgaria. Journal of

Agricultural Economics, 50 (1): 36-47.

5.Banks, J., Blundell, R. and Lewbel, A. 1997. Quadratic engel

curves and consumer demand, The Review of Economics and

Statistics, 79(4): 527-539.

6.Chen, K. and Chen, C. 2000. Cross Product Censoring in a Demand

System with Limited Dependent Variables. A Multivariate Probit

Model Approach. Rural economy. Staff paper. University of

Alberta.

7.Deaton, A. and Muellbauer J. 1980a. An almost ideal demand

System. American Economic Review, 70 (3): 312-326.

8.Deaton, A. and Muellbauer J. 1980b. Economics and consumer

behavior. Cambridge Uni Press Cambridge.

9.Ernest Liu, K. 2003. Food Demand In Urban CHINA. An Emprical

Analysis Using Micro Houshold Data. Thesis (M.S). The Ohio

State University. USA, 164.

10. Esfandiari, N.1996. Some of the demand function for wheat and

other foodstuffs in Iran. Almost Ideal Demand System. MSc

thesis in agricultural economics. Shiraz University.

11. Fkhraei, A. and Nowruzi, F.2006. Error correction model of

demand for different types of imported rice and local rice in Iran.

Quarterly Iranian Economic Research. (30): 135-119.

12. Faraj-Zadeh, G. and Najafi, B.2004. Reduce the effects of

subsidies on food consumers in Iran. Quarterly Iranian Economic

Research. (20): 156-135.

13. Frank T, D. and Dean C. M. 2004. Aggregation effects on price

and expenditure elasticities in a quadratic almost ideal demand

system. Canadian Journal of Economics, 37 (3): 48-53.

14. Gharib Nawaz, M.R.2007. Effect on the consumption pattern of

households in urban and rural income distribution in Iran: using

Quadratic Almost Ideal Demand System Model. Master thesis in

agricultural economics. Shiraz University.

15. Gylanpur, A. 2000. Optimization model for Iran's rice policy.

Ph.D. Dissertation University. Science and Research Unit.

16. Gholipour Soleimani, A. 1999. Econometric model for Iranian

imports. National Rice Research Institute.

17. Gujarati, D. 1993. Econometric foundations. Abrishami, H.

translation. Tehran University Press.

18. Gorman, W. M. 1970. The Concavity of Additive Utility

Functions. Unpublished typescript, University of North Carolina.

Reprinted as Chapter 9 in C. Blackorby and A. F. Shorrocks, eds.

Separability and Aggregation: Collected Works of W. M.

Gorman, Volume I Oxford: Clarendon Press, 1995: 127-136

19. Hashemi Banab, s. and Qhahremanzadeh, A.2005. The pattern of

consumption of foodstuffs in Iran: using Detachable Test.

Abstract This is the fifth conference on Iran Agricultural

Economics. University of Sistan and Baluchestan. Agricultural

and Development Economics. 15. (60): 257 -150

20. Hassanpour, A. and Khalid, M.2000. Demand structure of the

main groups of goods and services in urban Iran. Proceedings of

the Third Conference of Iranian Agriculture Economics. Ferdowsi

University of Mashhad. 207.

21. Hein, D. and Wessells, C.R. 1990. Demand Systems Estimation

with Microdata. A Censored Regression Approach. Journal of

Business & Economic Statistics, 8 (3): 365-371.

22. Jafari, F.and Kohansal, M. R.2007. The demand for meat in Iran.

Abstract Agriculture Economics Sixth Conference of Iran.

Mashhad University. 183.

23. Khalilian, S.1990. calculate and estimates of demand for rice.

Thesis from instructors. Tarbiat Modarres University.

24. Laraki, K. 1989. Food subsidies. A Case Study of Price reform in

Moroco. LSMS Working Paper. No. 50. 

25. Liu, K. And Sun, Ch. 2005. A globally flexible. quadratic almost

ideal demand system: an application for meat demand in Taiwan.

Paper department of economics, national Chung Cheng

University.

26. Ministry of Agriculture. 2009. Statistics.

27. Mojaver Hosseini, F.2007. estimated elasticity of price and

income for the group of edible and non edible products: using

almost ideal demand system. Journal of Agricultural and

Development Economics. (57): 8. 224-199.

28. Mohammadi, H. 1999. estimates import demand for grains with

almost ideal demand linear model. MS Thesis, University of

Shiraz.

29. Pakdaman, M. 2007. Effect of food subsidy reform on food

security in Iran. MS Thesis, University of Shiraz.

30. Pollak, R.A. and Wales, T.J. 1992. Demand system specification

and estimation. Oxford University. Press. New York.

31. Rickertsen, KChalfant, J.A. and Steen, M. 1995.The effects of

advertising on the demand for vegetables. Europe Review

Agricultural Economics, 22 (6): 481-494.

32. Stocktone, M.C. 2004. Applications Of Demand Analysis For

The Dairy Industry Using Household Level Scanner Data. Thesis

(PHD). Texas A&M University. USA.

33. Shonkwiler, J.S. and Yen, S. 1999. Two-Step Estimation of a

Censored System of Equations. American Journal of Agricultural

Economics, 81 (4): 972-982.

34. Scheaffer, R.L., Mendenhall, W. and Ott, L. 1995. Elementary

survey sampling. Wadsworth publishing company. Fifth edition.

35. Tiffin, A. and Tiffin R.1999. Estimate of Food Demand

Elastisities for Great Britain: 1972-1994. Journal of Agricultural

Economics, 50 (1): 140-147.

36. Wenye, Y. 2007. Food demand in rural china: a study of rural

household models. Phd thesis. The Ohio State University