Assessment of Consumer Supporting Policy Effect on Livestock and Poultry Sub-sector Demand

Abstract
Understanding of government policies and categorizing and prioritizing them in order to perform accurate them is essential. Hence, in order to achieve optimal production conditions should take suitable supporting policies for agriculture sector. This study is to assess sector consumer supporting policy of livestock and poultry sub-sector during the first to fourth program during 1989-2009 by MPS and CSE indices by using of OECD approach. The results show that for livestock and poultry sub-sector, CSE in nominal value change form -163.06 Bil Rials in 1999 to -78998.43 Bil Rials in 2009. Also, in real value change form -3197.41 Bil Rials in 1999 to -39179.9 Bil Rials in 2009 (about 12 times). Most supporting is allocated during 2end development program to livestock and poultry sub-sector that is 10223.05 Bil Rials. Results of demand model shows that livestock and poultry consumer supporting policy have had a variety effect on demand. So, consumer supporting policy has negative effect on beef and lamb (-0.13 and -0.08). But due to consumer supporting policy, chicken and specially milk demand, have increased (0.25 and 0.43). It seems that according to quantity and direction of consumer supporting policy effect on demand, we could use it for determination of suitable direction of consumer supporting policy.

JEL Classification: Q28, E65, E61

Keywords:
Agricultural Policies, Consume Supporting Policy, Livestock and Poultry Sector, Demand, Hide Tax