Studying the Demand Schedule and Consumption Behavior of the Urban Households of the Country

Subject Areas : Business Management

Mohammad Ali Motafaker azad ¹ , Habib Agajani ² , Kazem Amjadi ³

1 - Assistant Professor of Economics, University of Tabriz
2 - Master of Science (Economics), Faculty Member of Islamic Azad University, Espoo
3 - Master of Science (Economics), Faculty Member of Islamic Azad University, Tabriz

Received: 2007-05-24 Accepted : 2007-11-01 Published : 2007-11-22

Keywords: demand function, urban households, Almost Ideal Demand System (AIDS), consumption behavior,

Abstract :

       In this paper, the consumption behavior of the Urbanal households of the country in Iran has been studied over 1358-1380 through “Almost Ideal Demand System” model. The articles studied in five main groups include “foods, drinks and tobacco products”, “clothing and shoes”, “residence, fuel and electricity”, and “other goods and services”. To study the consumption behavior of city households, Almost Ideal Demand System (AIDS) has been used. The estimation of the mentioned system has been performed by SUR method. After estimating this model for various article groups of the country urban households, the related, intersecting and income price elasticity has been calculated. The results obtained from hypotheses test show that the homogeneous hypotheses denoting the lack of users’ monetary suspicion, impressibility of household consumption basket by the relative changes of prices, the necessity of article group of " food, drink and tobacco products " and " furniture ", the concordance of price related coefficients with the demand theory has been verified and the conjunction hypothesis (on the intersection effect of prices) is rejected.

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