Investigation of Allocation System in Urban Household Budget (Differential System Demand Approach)

Document Type : Original Article

Authors

1 Sistan and Baluchestan University, Faculty member

2 Ilam University, Faculty member

Abstract

This Study investigates consumer demand for goods and survey allocation system in Iran. A complete system demand equation describes how total consumer resources are being allocated over various uses. The allocation is modified in response to changes in the structure of prices. In order to study the response of demand for goods to prices and total expenditure, many differential demand system have been estimated (CBS, NBR, AIDS and Rotterdam).
Statistical measures indicated that Rotterdam is the best model in comparison with other models (CBS, NBR and AIDS).In this study calculated elasticities from the Rotterdam model with both homogeneity and symmetry assumptions have been used. The result of this paper shows that the expenditure elasticity of “Eating group” is greater than one, and expenditure elasticity of “House group” lesser than one. In other word , the result indicates that, “Eating group” is luxury good and “House group” is necessity good.

Keywords

References

خسروی نژاد، علی اکبر (1376)، برآورد سیستم مخارج خطی و تحلیل رفاهی خانوارهای شهری، مؤسسة مطالعات و پژوهش‌های بازرگانی.
قنبری، علی (1372)، برآورد عرضه و تقاضای گوشت،پایان نامة دانشکدة اقتصاد دانشگاه تهران، 1372.
سپه وند، حامد (1383)، برآورد سیستم مخارج خطی در ایران، پایان‌نامة دانشکدة اقتصاد علامه طباطبایی.
Barten , A. “ Evidence on the Slutsky Conditions for Demand Equations” The Review of Economics and Statistics, Vol. 49, No. 1. (Feb., 1967), pp. 77-84.                       
Chalfant, A. “A Globally Flexible, Almost Ideal Demand System”, Journal of Business & Economic Statistics, Vol. 5, No. 2. (Apr., 1987), pp. 233-242.
Deaton, A., and J. Muellbauer. “An Almost Ideal Demand System.” The American Economic Review 70, no. 3(1980): 312-326.
Dean C. Mountain, The Rotterdam Model: An Approximation in Variable Space, Econometrica, Vol. 56, No. 2. (Mar., 1988), pp. 477-484.
Evans, L. “On the Restrictive Nature of Constant Elasticity Demand Functions.” International Economic Review 35, no. 4(1994): 1015-1018.
Green; R. Julian M. Alston“Elasticities in AIDS Models”American Journal of Agricultural    Economics, Vol. 72, No. 2. (May, 1990), pp. 442-445.
Kenneth W. Clements; E. Antony Selvanathan, “The Rotterdam Demand Model and Its Application in Marketing”, Marketing Science, Vol. 7, No. 1. (Winter, 1988), pp. 60-75.
Manser, M. “Elasticities of Demand for Food:  An Analysis Using Nonadditive Utility Function Allowing for Habit Formation.” Southern Economic Journal 43, no. 1(1976): 879-891.
William A. Barnett, “Theoretical Foundations for the Rotterdam Model”, The Review of Economic Studies, Vol. 46, No. 1. (Jan., 1979), pp. 109-130.

Files

Share

How to cite

Statistics