In this study, to examine the consumers’ behavior and to calculate the price and expenditure elasticity, the Quadratic Almost Ideal Demand System was used and the circumstances of income distribution among different income groups were shown using the deducted indices from this system. To reach the goals of this study, the Iran’s statistics center data of household expanses in 1386 was used and the seemingly unrelated regression estimator (sure) was estimated using the Eviews 5 software. The selected goods liable to subsidy are vegetable oil, sugar, bread and rice. The results obtained from the expenditure elasticity shows the rural consumers’ higher tendency towards increasing the consumption of the goods than the urban consumers. Considering the low price elasticity of the under study goods it seams that using just the price policies to correct the consumption model is not enough. By studying the results obtained from the applied demand system, it was observed that in urban areas the highest inequality is in the high- income group and in rural areas in the low- income group.
Khorami Moghadam, S., Zare Mehrjerdi, M. R., Mehrabi, H., & Bakhshoodeh, M. (2013). Analysis of Subsidized Goods Consumption Model: Usage of Quadratic Almost Ideal Demand System. Agricultural Economics, 6(4), 55-72.
MLA
Simin Khorami Moghadam; Mohammad Reza Zare Mehrjerdi; Hossein Mehrabi; Mohammad Bakhshoodeh. "Analysis of Subsidized Goods Consumption Model: Usage of Quadratic Almost Ideal Demand System". Agricultural Economics, 6, 4, 2013, 55-72.
HARVARD
Khorami Moghadam, S., Zare Mehrjerdi, M. R., Mehrabi, H., Bakhshoodeh, M. (2013). 'Analysis of Subsidized Goods Consumption Model: Usage of Quadratic Almost Ideal Demand System', Agricultural Economics, 6(4), pp. 55-72.
VANCOUVER
Khorami Moghadam, S., Zare Mehrjerdi, M. R., Mehrabi, H., Bakhshoodeh, M. Analysis of Subsidized Goods Consumption Model: Usage of Quadratic Almost Ideal Demand System. Agricultural Economics, 2013; 6(4): 55-72.
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