American Journal of Applied Sciences

An Experimental Comparison Between Demand Systems of Major Food Groups in Urban Economics

Mahmoud D. Kakhki, Naser Shahnoushi and Fatemeh Rezapour

DOI : 10.3844/ajassp.2010.1164.1167

American Journal of Applied Sciences

Volume 7, Issue 8

Pages 1164-1167

Abstract

Problem statement: This study examined the eleven major food groups demand for urban areas of Iran during1361-1386. Approach: AIDS, ROTTERDAM, CBS and NBR models was compare together and Sur method was applied for estimating of systems, too. Results: Results of study showed cream and fresh fruits have smallest and largest income elasticity, respectively. Also, cream, bread, dairy, egg, fresh vegetables, oils and fats and sugar and products, are necessary, meat, fresh fruits and dried fruit are luxury and grain is only inferior group, too. The exception meat, dried fruit and sugar and its products, other groups are inelastic than own price changes. Also, among them, grain and dried fruit are most inelastic and most elastic, respectively. That means that demand for them has smallest and largest sensitivity than own price influences. Also, cross price elasticitys represented that nor of the groups, are gross strictly substitute, together and gross substitute among them is weak. About complement relation, should say fresh fruits and oils and fats are gross strictly complement for cereal and sugar and its products, respectively and gross complement relation among other groups is found weak. Conclusion: AIDS was better than other models and should be apply for analysis of major food group demand for urban areas of Iran, alternatively.

Copyright

© 2010 Mahmoud D. Kakhki, Naser Shahnoushi and Fatemeh Rezapour. This is an open access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.