Investigation of generalized composite commodity theory and estimation of demand function of meat types for urban households in Iran

Document Type : Research Paper

Authors

• Mohammd Rezvani ¹
• Hamid Amirnejad ²
• Yadollah Bostan ³

¹ Ph.d student. Department of Agricultural Economics, Faculty of Agricultural and Natural Resources, University of Tehran

² Professor, Department of Agricultural Economics, Sari Agricultural Sciences and Natural Resources University, Sari, Mazandaran, Iran

³ Phd student. Department of Agricultural Economics, Sari Agricultural Sciences and Natural Resources University, Mazandaran, Iran

10.30495/jae.2024.30531.2345

Abstract

The aim of the present study was to investigate the possibility of aggregating and estimating the collective demand function for meat commodity groups (mutton, beef, poultry, canned fish, southern fish and northern fish) using Weak Separability methods, generalized composite commodity and the demand function of Iranian urban households. Necessary data and information were obtained from the annual statistics of expenses and income of Iranian households of the Statistics Organization for the period of 2005-2020. The results of income elasticity showed that two canned goods, fish and southern fish, are considered luxury for Iranian urban households. Northern fish with a self-price pull of -1.28 is most sensitive to price changes against other types of meat. Also, canned fish and southern fish are substituted based on the intersection of canned fish. According to the results of the Separability test for different types of meat, different types of meat can be divided into two groups of red and white meat.

Keywords

• Aggregation
• Differential Demand System
• GCCT
• GODDS
• Weak Separability

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