ANALYSIS OF SUBSIDIZED GOODS CONSUMPTION MODEL: USAGE OF QUADRATIC ALMOST IDEAL DEMAND SYSTEM

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KHORRAMI MOGHADDAM S.; ZARE MEHRGERDI M.R.; MEHRABI BOSHRABADI H.; BAKHSHOODEH M.

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Journal: AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL) Year:2012 | Volume:6 | Issue:4 Page(s): 57-74

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Title

ANALYSIS OF SUBSIDIZED GOODS CONSUMPTION MODEL: USAGE OF QUADRATIC ALMOST IDEAL DEMAND SYSTEM

Author(s)

KHORRAMI MOGHADDAM S. | ZARE MEHRGERDI M.R. | MEHRABI BOSHRABADI H. | BAKHSHOODEH M. | Issue Writer Certificate

Keywords

CONSUMER'S BEHAVIORQ2

GOODS LIABLE TO SUBSIDYQ2

URBAN & RURAL AREAS OF IRANQ3

Abstract

In this study, to examine the consumers’ behavior and to calculate the price and expenditure elasticity, the Quadratic Almost Ideal Demand System was used and the circumstances of income distribution among different income groups were shown using the deducted indices from this system. To reach the goals of this study, the Iran’s statistics center data of household expanses in 1386 was used and the seemingly unrelated regression estimator (sure) was estimated using the Eviews 5 software. The selected GOODS LIABLE TO SUBSIDY are vegetable oil, sugar, bread and rice. The results obtained from the expenditure elasticity shows the rural consumers’ higher tendency towards increasing the consumption of the goods than the urban consumers. Considering the low price elasticity of the under study goods it seams that using just the price policies to correct the consumption model is not enough. By studying the results obtained from the applied demand system, it was observed that in urban areas the highest inequality is in the high-income group and in rural areas in the low- income group.

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APA: Copy

KHORRAMI MOGHADDAM, S., ZARE MEHRGERDI, M.R., MEHRABI BOSHRABADI, H., & BAKHSHOODEH, M.. (2012). ANALYSIS OF SUBSIDIZED GOODS CONSUMPTION MODEL: USAGE OF QUADRATIC ALMOST IDEAL DEMAND SYSTEM. AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL), 6(4), 57-74. SID. https://sid.ir/paper/124405/en

Vancouver: Copy

KHORRAMI MOGHADDAM S., ZARE MEHRGERDI M.R., MEHRABI BOSHRABADI H., BAKHSHOODEH M.. ANALYSIS OF SUBSIDIZED GOODS CONSUMPTION MODEL: USAGE OF QUADRATIC ALMOST IDEAL DEMAND SYSTEM. AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL)[Internet]. 2012;6(4):57-74. Available from: https://sid.ir/paper/124405/en

IEEE: Copy

S. KHORRAMI MOGHADDAM, M.R. ZARE MEHRGERDI, H. MEHRABI BOSHRABADI, and M. BAKHSHOODEH, “ANALYSIS OF SUBSIDIZED GOODS CONSUMPTION MODEL: USAGE OF QUADRATIC ALMOST IDEAL DEMAND SYSTEM,” AGRICULTURAL ECONOMICS: IRANIAN JOURNAL OF AGRICULTURAL ECONOMICS (ECONOMICS AND AGRICULTURE JOURNAL), vol. 6, no. 4, pp. 57–74, 2012, [Online]. Available: https://sid.ir/paper/124405/en

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