A study of relationship between past and current food consumption patterns in rural areas of Iran

Document Type : Original Article

Author

Assistant Professor , Agricultural Economics, Shiraz University, Iran,

Abstract

In this study, linkages between past and current food consumption in rural areas was studied by calculating a habit effect besides substitution and income effects. For this purpose, applying an expenditure function, the growth of expenditure shares for various groups of foods was evaluated considering these effects. Typical results showed that habit has a significant role in consumption pattern. Also, considering money illusion, it seems that income has no significant effect on consumption. Taking into account the past consumption patterns, consumers try to keep those foods in their current patterns that either have been less expensive or are produced by households.

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References

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Agricultural Economics and Development
Volume 13, Issue 2 - Serial Number 50
September 2005
Pages 35-48

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