Estimation of simultaneous equation demand and supply system for meat in Iran

Document Type : Original Article

Abstract

 It has been widely discussed that agriculture differs from the non-farm sector of the economy. D istinction should be made between the livestock and crop sectors, because of wide differnces between the two. Indeed, different policies must be implemented in livestock industry.   Policy maker need to know the response of farmers and consumers to the changing economic and non-economic conditions in the industry. They must know the effects on several target variables, such as production, consumption, imports, etc, as exerted by the determinant ones, in order to direct the latter towards the best possible ends. These determinant variables may be either exogenous or endogenous. This guidance to policy-makers may be provided in the form of estimated statistical relationships among the relevant variables of the industry in question. A complete system of equations may be built for each sector or industry. The relevant structural parameters are estimated based on Iran meat consumption data over the period of 1971–2001 , using the single equation and other simultaneous equation methods.