Evaluation the dairy demand of Iran using almost ideal demand system (AIDS)

Document Type : Research Paper

Authors

1 Associate Professor, Department of Agricultural Economics, Faculty of Agriculture, Tabriz University, Iran

2 MSc. Student, Department of Agricultural Economics, Faculty of Agriculture, Tabriz University, Iran

Abstract

Consumption of dairy products in terms of the health and economic terms is very important. The analysis of consumer behavior can help to take policies consistent and correct in this regard. In this study the demand for milk, yogurt and cheese was estimated by using time series data related to 1984-2009 in the framework of the idea of an almost ideal demand system. The results showed that all of own-price elasticity is negative. The elasticity of milk and cheese are low but the yoghurt elasticity is high. All the income elasticities are positive, and the calculation of Allen elasticity showed that there are a substitution relationship between “milk and yogurt” and “yogurt and cheese” and complementary relationship between “milk and cheese”.

Keywords

References

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Iranian Journal of Agricultural Economics and Development Research
Volume 45, Issue 4 - Serial Number 4
January 2015
Pages 693-701

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