Analysis of demand for different kinds of meat in urban areas of Iran (Application of AIDS)

Document Type : Original Article

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Abstract

Majority of studies that have used AIDS in Iranian economy, have faced major problems for an improper choices in approaching index and the method of estimation, and also in price elasticity formula. The main goal of this paper is introducing the econometrics debates in relation to AIDS, and the use of it in surveying the price and
income elasticity for different kinds of meat in urban areas of Iran during the years 1960-2000. The results show that different kinds of meat are considered as an unnecessary and inelastic product in urban areas. Therefore any charges in their prices are not to be a good lever to reform the consumption model. The results from estimating the elasticity indicate that chicken- fish and chicken – red meat is gross substitutes and red meat and fish are gross supplementary. Also it was shown that the substitution relationship between chicken and fish is stronger and all meats are Hix-Allen substitutes for each other.

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