Kambiz Hozhbar Kiani; Alireza Siami
Volume 8, Issue 29 , July 2008, , Pages 281-307
Abstract
Many of the government programmes for food security are based on their intervention in changing equilibrium prices and quantities. For example, we can refer to the subjects of price control, giving subsidies to some foodstuffs and also the rationing of some products. But such programmes would become ...
Read More
Many of the government programmes for food security are based on their intervention in changing equilibrium prices and quantities. For example, we can refer to the subjects of price control, giving subsidies to some foodstuffs and also the rationing of some products. But such programmes would become valuable when they are offered on the basis of accurate studies for the sake of examining their effects on the household consumption basket and also their nutritious values. These estimations are largely done by the use of demand elasticities of prevailing foodstuffs in the family consumer baskets. In all of these studies the estimated price demand elasticities of existing foodstuffs have been obtained by using time- series data that this Data use the average variables. So definitely does not fully explain our need of studying the household food consumption basket. Therefore, keeping this problem in mind, we have used survey data by 28000 Iranian families in the year 1380 in order to estimate the household demand elasticities. In this study, using a new approach and with the aid of household survey data and by applying the concept of
marginal or unit values, reflecting market prices and consumer choices based on the quality of these foodstuffs, we have been able to estimate the demand functions for food products. Based on these estimates the price demand elasticity of foodstuffs, the cross and income elasticity have been all obtained for seven different groups of food products containing kinds of foodstuffs in the consume food basket of Iranian families.
In this research, we have estimated the demand functions, price and income elasticities by using the almost Ideal Demand System (AIDS). The other new thing in this research is the nutrient elasticities. In fact using the foodstuffs elasticities, and with the aid of matri algebra by a transformation matrix, we have estimated nutrient elasticities. These elasticities explain the effects of the change in consumer income and the prices of foodstuffs on the amount of the nutrient that should reach the body of individuals. These implication provide the nutrition administrators with important and key instruments, with the aid which they would be able to evaluate the impacts of food programme on the health of society from the viewpoint of nutrition.
