An evaluation of the structure of essential commodities demand in agricultural sector: including demographics

Document Type : Research Paper

Author

• Mehri Ahmadi Javid

Tarbiat Modarres University ,Tehran.

10.30495/jae.2024.29913.2320

Abstract

The effectiveness of different economic policies depends on the full recognition of demand structure and household consumption pattern. So, estimating the demand has an important effect on food security and consumers 'welfare.

In this study, the method of seemingly unrelated regression and the QUAIDS containing demographic variables, is used . For this purpose, the raw data of household expenditure and income plan for the year 2020 is used.

The results show that all the compensated and relative uncompensated price elasticity of households are negative and less than one. So, it seems that all the commodity groups are really essential. Also, the result of the meat, sugar and milk groups(total households) and oil and beans groups(rural households) expenditure elasticity is more than one .

As for the importance of two groups of "rice and grain" and "meat", considering the pricing model for these commodities in the household food basket is very important. it is suggested that the most supportive help of these two food groups being applied to access the initial satisfaction level.

Keywords

• "؛ Agricultural commodities demand"؛ household demographic variables"؛
• "؛ QUAIDS"

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