Islamic Economics Studies Bi-quarterly Journal

Cognition of Iranian Consumers Consumption Behavior in Order to Advance the Resistance Economy

Document Type : Research Paper

Authors

1 Postdoctoral Researcher in Economics, Department of Economics, Faculty of Social Sciences, Razi University

2 Member of Scientific Board / Department of Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran.

3 Member of Scientific Board / Department of Economics, Faculty of Social Sciences, Razi University, Kermanshah, Iran

10.30497/ies.2023.241577.2014

Abstract

It is very necessary to understand the consumption behavior of consumers in order to institutionalize the correct and appropriate method of using material and non-material resources of the country, because according to paragraph 8 of the general policies of the resistance economy, this knowledge will improve people's life indicators and reduce costs. The main goal of this paper is to understand the behavior of Iranian consumers by extracting price and income elasticities using the linear approximation model of the almost ideal demand system based on seemingly unrelated regressions. For this purpose, 8 product groups including food, beverages and tobacco, shoes and clothes, housing, furniture and household appliances, health and treatment, transportation and communication, entertainment, culture and other groups during the period of 1971- 2019 is considered. The findings of this research showed that price elasticities are negative for all 8 subgroups of goods, and for all subgroups except foods, beverages, tobacco and other goods, the income elasticity is less than one. The non-eighth groups are less than 1 with a very small difference.

Keywords

Abbasi-Nejad, H and Tashkini, A. (2010). Applied econometrics (advanced). First Edition. Tehran: Noor Elm Publications. )In Persian(
Ashrafzadeh, S. H. and Mehregan, N. (2008). Panel data econometrics. University of Tehran. First Edition. Tehran: Taavoon Research Institute. )In Persian(
Azizi, J and Torkmani, J. (2001). Estimation of demand functions for different types of meat in Iran. Agricultural Economics and Development, 9 (34) , 217-237. )In Persian(
Blanciforti, L. A., Green, R. D., & King, G. A. (1986). US consumer behavior over the postwar period: an almost ideal demand system analysis. Monograph
Breusch, T.S. and Pagan, A.R. (1979). A Simple Test for Heteroscedasticity and Random Coefficient Variation. Econometrica, 47, 1287-1294.
Deaton and Muellbauer, J. (1980). An Almost Ideal Demand System. American Economic Review, 70, 312-36.
Deaton, A., and Muellbauer, J. (1980). An almost ideal demand system. The American economic review, 70(3), 312-326.‏
Ghorbani, M, Shokri, E and Motalebi, M. (2010). A model of almost ideal demand error correction system for different types of Meat in Iran. Journal of Agricultural Economics and Development, 69, 132-112. )In Persian(
Hassan-Pour, E and Khaledi, M. (2000). Investigating the demand structure of the main groups of goods and consumer services of urban households in Iran. Proceedings of the Third Agricultural Economics Conference, Mashhad. )In Persian(
Hayes, D. J., Wahl, T. I., & Williams, G. W. (1990). Testing restrictions on a model of Japanese meat demand. American Journal of Agricultural Economics, 72(3), 556-566.‏
Khosravi-Nejad, A.A. (2004). Effects of reducing or eliminating subsidies (in the group of foodstuffs) on urban households in Iran within the framework of the cost of living index and the system of demand equations. Ph.D. Thesis . Islamic Azad university. Science and Research Branch. Tehran. )In Persian)
Kohansal, M, R, Hatef, H. (2005). Investigating the Demand Gap of Major Urban and Rural Groups in Iran (An Analysis on Subsidy Targeting Policy). Fifth Iranian Agricultural Economics Conference. )In Persian(
Mohammadi, A (2010). Investigating the trend and elasticity of public education expenditure in the household consumption basket. Journal of Education, 104, 91-116. )In Persian(
Mojaver-Hosseini, F. (2007). Estimating price and revenue elasticities for the group of food and non-food goods using an almost ideal demand system. Journal of Agricultural Economics and Development, 15 (57), 199-224. )In Persian(
Motafker-Azad, Mohammad Ali; Aghajani, Habib and Kazem Amjadi. (2007). The investigation and analysis of demand function and consumption behavior of urban households. Productivity Management 2, 199-226. )In Persian(
Pajouyan J. and Ahmadi S.M.M.(2014) Estimation of price and income elasticities of consumption groups of urban households using almost ideal demand system based on panel data, Financial Economics, 8(26),13-32. (In Persian)
Samadi, Ali Hussein (2004). A critical review of almost ideal demand system (AIDS) Application in consumer demand analysis: A case study of urban and rural Households of Kohghilouye-and- Boyer-Ahmad Province. Iranian Journal of Economic Research, 6 (20), 157-187. )In Persian(
Shahabadi A., Sahabi B., Salmani Y., and Valinia A. (2017), Estimation of individual insurance dElasticities and measuring the welfare impact of premium increases: An application of almost ideal demand system. Iranian Journal of Insurance Research, 6(2), 1-20. (In Persian)
Shakibaei, A, Hori, H and Irani Kermani, F.(2006). Estimation of elasticities of demand for health services using AIDS model. Iranian Journal of Economic Research, 27, 199-230. )In Persian(
Tiffin, A., & Tiffin, R. (1999). Estimates of food demand elasticities for Great Britain: 1972–1994. Journal of Agricultural Economics, 50(1), 140-147.‏
Islamic Economics Studies Bi-quarterly Journal
Volume 15, Issue 1 - Serial Number 29
September 2023
Pages 181-200