Application of the Implicitly Directly Additive Demand System (AIDADS) in Estimation of Subsistence Level in the Rural and Urban Households of Iran

Document Type : Research Paper

Authors

1 Professor of Economics, University of Tabriz

2 Associate Professor of Economics, University of Tabriz

3 Assistant Professor of Economics, University of Urmia

Abstract

The Subsistence Level and Engel elasticity are most important factors in poverty alleviation programs. In this study we use An Implicitly, Directly Additive Demand System (AIDADS) for measuring subsistence level and Engel elasticity of main groups of commodities in Iran. To that end, we use household level data from the Statistics Center of Iran during the period of 1998-2009. The results show that Engel elasticity for "food, drink and tobacco group", "cloth and shoe group", "residential, water, electricity and fuel group" in urban households and "food, drink and tobacco group", "cloth and shoe group", in rural households are necessity commodities.

Keywords


  1. 1-ابونوری، اسماعیل و مالکی، نادر (1387). خط فقر در استان سمنان طی برنامه‌های توسعه (1383-1368). رفاه اجتماعی، سال هفتم، 28، 215-237.

    2-ارشدی، علی، حسن زاده، علی و مستشاری، فرهنگ (1389). تعیین حداقل معاش خانوارهای شهری استان کرمانشاه با استفاده از سیستم مخارج خطی. فصلنامه اقتصادمقداری، 7، 4، 1-23.

    3-داننده اسکویی، عفت (1390). برآورد تقاضای خانوارهای شهری ایرانی برای گروه کالایی انرژی با استفاده ازمدل AIDADS. پایان نامه کارشناسی ارشد، دانشگاه تبریز.

    4-سلامی، حبیب اله و شهبازی، حبیب (1388).کاربرد سیستم تقاضای مستقیم جمع پذیر ضمنی (AIDADS) در تبیین رفتار مصرفی خانوارهای ایرانی از مواد خوراکی منتخب. اقتصاد و توسعه کشاورزی (علوم و منابع کشاورزی)، 23، ، 118-108.

    5-محمدزاده، پرویز (1378). بررسی الگوی رفتار مصرفی خانوارهای روستایی کشور. وزارت جهاد کشاورزی، معاونت عمران و صنایع روستایی، تهران.

    6-محمدی، شاکر، سایه میری، علی و گرجی، هادی (1386). اندازه‌گیری حداقل معاش با استفاده از سیستم مخارج خطی: مورد استان ایلام در طی دو برنامه. فصلنامه پژوهشهای اقتصادی ایران، سال نهم، 31، 165-188.

    1. Cranfield, .J.A.L., Preckel, .P.V., Eales, .J., & Hertel, T.W. (2000). On the estimation of an implicitly additive demand system. Applied Economics, 32, 5, 1907-1915.

    2. Cranfield, .J.A.L., Preckel, .P.V., Eales, .J., & Hertel, T.W. (2002). Estimating consumer demands across the development spectrum: maximum likelihood estimates of an implicit direct additivity model. Journal of Development Economics, 68, 289- 307.

    3. Cranfield, .J.A.L., Eales, .J., Hertel, T.W., & Preckel, .P.V. (2003). Model selection when estimating and predicting consumer demand using international, cross section data. Empirical, 28, 28, 353-364.

    4. Cranfield, .J.A.L., Preckel, .P.V., & Hertel, T.W. (2005). A modified, implicit, directly additive demand system. Working Paper 05/03, Department of Agricultural Economics and Business, University of Guelph, Guelph, Ontario, October.

    5. Cranfield, J., Preckel, P., & Hertel, T. (2007). Poverty aAnalysis using an international cross-country demand system. The World Bank, Policy Research Working Paper, 4285

    6. Cranfield J.A.L., P.V. Preckel, and Hertel, T.W. (2010). A modified, implicit, directly additive demand system. Applied Economics, 42, 143-155.

    7. Li, .S., & He, .J. (2010). Predicting expenditure patterns across provinces in China based on AIDADS demand system. Thirteenth Annual Conference on Global Economic Analysis Development in china, Development Research Center, The State Council of China.

    8. Preckel, P., Cranfield, J.,  & Hertel, T.W. (2010). A modified, implicit, directly additive demand system. Applied Economics, 42, 2, 143-155.

    9. Rimmer, M.T., & Powell, A. A. (1992a). Demand patterns across the development spectrum: estimates of AIDADS. Working Paper #OP-75, IMPACT Project, Monash University.

    10. Rimmer, M.T., & Powell, A. A. (1992b). An implicitly directly additive demand system: estimates for Australia. Working Paper #OP-73, IMPACT Project, Monash University.

    11. Rimmer, M.T., & Powell, A. A. (1996). An implicitly additive demand system. Applied Economics, 28, 1613-1622.

    12. Rimmer, M.T., & Powell, A. A. (2001). Demand patterns across the development spectrum: estimates for the AIDADS system. Preliminary Working Paper, No. OP–75, reissued August 2001.

    13. Reimer, J., & Hertel, T., w. (2004). Estimation of international demand behavior for use with input-output based data. Economic System Research, 16, 4, 347-366.

    14. Verma, M., Hertel, T. W., & Preckel, P. V. (2011). Predicting within country household food expenditure variation using international cross-section estimates. Economics Letters, 113(2011), 218-220.

    15. Yu, W., Hertel, T.W., Eales J.S., & Preckel P.V. (2000). Integrating the AIDADS demand system into the GTAP model. Paper presented to Third Annual Conference on Global Economic Analysis, Melbourne, Australia, July 2000.

    16. Yu, W., Hertel, T.W., Preckel, P.V., & Eale, J.S. (2002). Projecting world food demand, a comparison of alternative demand systems. Paper prepared for presentation at the Xth EAAE Congress Exploring Diversity in the European Agri -Food System, Zaragoza (Spain), 28-31, August 2002.

    17. Yu, W., Hertel, T.W., Preckel, P.V., & Eale, J.S. (2004). Projecting world food demand using alternative demand systems. World Bank Economic Review, 18(2), 205-236.