An Experimental Comparison Between Demand Systems of Major Food Groups in Urban Economics

Abstract

Problem statement: This study examined the eleven major food groups demand for urban areas of Iran during1361-1386. Approach: AIDS, ROTTERDAM, CBS and NBR models was compare together and Sur method was applied for estimating of systems, too. Results: Results of study showed cream and fresh fruits have smallest and largest income elasticity, respectively. Also, cream, bread, dairy, egg, fresh vegetables, oils and fats and sugar and products, are necessary, meat, fresh fruits and dried fruit are luxury and grain is only inferior group, too. The exception meat, dried fruit and sugar and its products, other groups are inelastic than own price changes. Also, among them, grain and dried fruit are most inelastic and most elastic, respectively. That means that demand for them has smallest and largest sensitivity than own price influences. Also, cross price elasticity' s represented that nor of the groups, are gross strictly substitute, together and gross substitute among them is weak. About complement relation, should say fresh fruits and oils and fats are gross strictly complement for cereal and sugar and its products, respectively and gross complement relation among other groups is found weak. Conclusion: AIDS was better than other models and should be apply for analysis of major food group demand for urban areas of Iran, alternatively.