Examining the conditions of aggregation and analyzing the demand for livestock products

Document Type : Original Article

Authors

1 Assistant Professor, Department of Agricultural Economics, Faculty of Economics and Agricultural Development, University of Tehran, Karaj

2 Ph.D student, Department of Agricultural Economics, Faculty of Economics and Agricultural Development, University of Tehran, Karaj, Iran

10.30490/aead.2024.364466.1576

Abstract

Investigating the conditions and factors affecting the amount of demand in the country can be the basis for providing the necessary solutions to control the market or other factors affecting the consumption of livestock products. But when the discussion of the demand of groups of households and the macro level in the country is discussed, the issue of aggregating the group of goods becomes very important. Therefore, considering the importance of grouping and aggregating different goods, the purpose of this study is to investigate the conditions of aggregating livestock products including red meat, fish, chicken, milk and eggs using weak separation methods and generalized composite goods for Iranian households in the period of 1383-1400. The results of the adjusted Wald statistic related to weak separability show that the product group of livestock products (red meat, fish meat, chicken, milk and eggs) can be separated into three groups: meat, milk and eggs. The results of the study indicate that red meat and fish are luxury goods for Iranian households, and chicken, eggs and milk are essential goods. Due to the high cross elasticity coefficients of the demand can be expected that the change in the price of red meat, the demand for chicken meat and the change in the price of fish meat will significantly change the demand for red meat. Therefore, in the application of optimal demand management and consumption pattern planning, the use of Substitude product price policies can be effective.

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