Analyzing the Food Basket of Rural Households in Iran

Document Type : Original Article

Authors

1 Assistant Professor of Agricultural Economics, Agricultural Planning, Economics and Rural Development Research Institute (APERDRI), Tehran, Iran.

2 Assistant Professor of Agricultural Economics, Agricultural Planning, Economics and Rural Development Research Institute (APERDRI), Tehran, Iran

Abstract

This study aimed generally at investigating and analyzing the consumption basket of rural households in different income deciles to achieve food security. For this purpose, the income deciles were initially divided into three general groups including the average of the first to third deciles as the first group, of the fourth to seventh deciles as the second group, and of the eighth to tenth deciles as the third group. Then, the Generalized Ordinary Differential Demand System (GODDS) was estimated using the integrated data of 2006-2017 in Seemingly Unrelated Regression Equations (SURE) method; and using Wald test, Almost Ideal Demand System (AIDS) function was selected as the appropriate functional form. The results of the price elasticity calculation showed that the price elasticity of food demand in rural areas was negative. It was also found that cereals and livestock meat as well as livestock and dairy products and sugar were complementary goods; cereals were known as the complementary goods for livestock, dairy products, and sugar; in addition, vegetables and pulses could be considered as substitutes for cereals in the rural areas. The calculation of income elasticity showed the positive values for food groups in the rural areas, indicating the normality of commodity groups. According to the results, the income elasticity of cereals, livestock, fish meat, shrimp and its products, dairy products, pulses and sugar was obtained a figure more than one, indicating that these foods were considered as the luxury goods.

Keywords

Main Subjects

References

  1. Abdollahi, M., Mohammadi, F., Houshyar-Rad, A., Hajifaraji, M. and Esfarjani, F. (2011). Shares of energy and nutrients intakes from subsidized food items in Iranian households in different socio-economic status. Iranian Journal of Nutrition Sciences and Food Technology, 6(1): 43-56. (Persian)
  2. Akbari, A., Ahmadi-Javid, M., Ziaei, M.B. and Barakati, S.M. (2017). Estimation of food demand function of urban households in Sistan and Baluchestan province using NNDS and QUAIDS systems. Agricultural Economics Research, 9(2): 93-116. (Persian)
  3. Armen, A., Mansouri, S.A. and Farahbakhsh, I. (2015). Estimation and comparison of demand function and elasticity of consumer goods in low-income and high-income groups in urban areas: application of integrated data into the almost ideal demand system (AIDS). Iranian Economic Journal: Macroeconomics (IEJM), 10(20): 29-56. (Persian)
  4. Ataei Salut, K. and Mohammadi, H. (2018). Determining the demand elasticity of selected food products in Mazandaran province using the model of the almost ideal demand system (AIDS): a case study of white meat, aquatic and red meat. Agricultural Economics Research, 10(3): 173-186. (Persian)
  5. Barosh, L., Friel, S., Engelhardt, K. and Chan, L. (2014). The cost of a healthy and sustainable diet– Who can afford it? Australian and New Zealand Journal of Public Health, 38(1):7-12.
  6. Davoudi, P. and Ghasemi-Mand, F. (2006). Estimation of price and income elasticities of new passenger cars in Iran. Journal of Economic Research, 6(20): 71-93. (Persian)
  7. Darvish-Jazi, A. (1994). Food security in the second five-year agricultural program. Journal of Agricultural Economics and Development, 2: 218. (Persian)
  8. Eales, J. and Wessells, C.R. (1999). Testing separability of Japanese demand for meat and fish within differential demand systems. Journal of Agricultural and Resource Economics, 24: 114-126.
  9. Eales, J., Durham, C. and Wessells, C.R. (1997). Generalized models of Japanese demand for fish. American Journal of Agricultural Economics, 79: 1153-1163.
  10. Fallahi, E., Khalilian, S. and Ahmadian, M. (2015). Extraction of demand functions and determination of economic value of water in the production of major crops of Seydan-Farough Plain of Marvdasht County. Journal of Agricultural Economics and Development, 23(90): 1-28. (Persian)
  11. Fan, S. (2000). Research investment and the economic returns to Chinese agricultural research. Journal of Productivity Analysis, 14: 163-182.
  12. Farajzadeh, Z. and Najafi, B. (2004). Behaviors of urban and rural consumers in Iran: a case study of subsidized commodities. Journal of Agricultural Economics and Development, 12(47): 103-123. (Persian)
  13. Ghasemi, H. (1999). Food and nutrition security of Iran: studies of planning and implementation model. Research Project. Tehran: Shahid Beheshti University of Medical Sciences (SBUM), National Nutrition and Food Technology Research Institute (NNFTRI). (Persian)
  14. Gilak Hakimabadi, M.T., Zaruki, Sh. and Rahmati, S. (2017). The loss of price increase in major food items, using the Panel-SURE method in the provinces of Iran. Quantitative Economics Quarterly Journal, 14(4): 53-92. (Persian)
  15. Greene, W.H. (2002). Econometric analysis (5th ed.). Prentice Hall.
  16. Heady, E.O. and Dillon, J.L. (1961). Agricultural production functions. Kalyani publishers. Ludhiana. India.
  17. Hoang Vu, L. (2020). Estimation and analysis of food demand patterns in Vietnam. Economies, 8(11): 1-17. DOI:10.3390/economies8010011.
  18. Kaneda, H. (1982). Specification of production functions for analyzing technical change and factor inputs in agricultural development. Journal of Development Economics, 11: 97-108.
  19. Mojaver-Hosseini, F. (2007). Estimation of price and income elasticities for the food and non-food goods groups using almost ideal demand system (AIDS). Journal of Agricultural Economics and Development, 15(57; Special Issue of Agricultural Markets): 199-224. (Persian)
  20. Moschini, G., Moro, D. and Green, R.D. (1994). Maintaining and testing separability in demand systems. American Journal of Agricultural Economics, 76: 61-73.
  21. Naderi Mahdiei, K. and Jalilian, S. (2016). Analysis of food insecurity and some factors affecting rural household-head women in Eslamabad-e-Gharb County. Journal of Research and Rural Planning, 5(2): 29-45. Available at http://jrrp.um.ac.ir/index.php/RRP/article/view/42423. (Persian)
  22. Norouzi, N., Moghaddasi, R. and Shamsoddini, S. (2013). Investigating the poverty and food insecurity and its influencing factors in rural areas of Khuzestan province. Proceedings of the First National Conference on E-economy Perspective, Iran, 28 December, 2013, Khorasgan Branch, Islamic Azad University, Ahvaz, Iran. (Persian)
  23. Shakoori, A. (2004). Food security and access in Iran. Social Sciences Letter, 24(24): 133-160. (Persian)
  24. Varhrami, V., Houshmand, Z. and Yousefi Hajiabad, R. (2015). Estimating the food price and income elasticities in Tehran urban households. Economical Modeling, 9(32): 103-122. (Persian)
  25. Zhou, D., Yu, X. and Herzfeld, T. (2014). Dynamic food demand in urban China, RTG 1666 global agri-food systems: trends, driving forces, and implications for developing countries. George August University of Gottingen, Heinrich Duker Weg 12.37073 Gottingen. Germany. Available at http://www. Uni-goettingen.de/globalfood), ISSN(2192-3248.
Village and Development
Volume 23, Issue 3 - Serial Number 91
December 2020
Pages 127-151

Files

Share

How to cite

Statistics