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

References

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