:: Volume 14, Issue 4 (Fall 2019) ::
J. Mon. Ec. 2019, 14(4): 525-554 Back to browse issues page
The Effect of Socioeconomic Variables on Provincial Bread Demand Using QAIDS Model
Taha Mehrani1, Fatemeh Ghasemimand2, Ali Asghar Salem *3
1- University of Tehran
2- Shahid Beheshti University
3- Allameh Tabataba'i University
Abstract:   (367 Views)

In this study, the effect of socioeconomic variables on provincial bread demand using the QUAIDS model has been investigated. In this model, socioeconomic variables such as age, gender and marital status of the head of household, the education level of the head of household and spouse’s head of household, household size, and occupation status of the head household have been used. The virtual variable of the target law of subsidies is also used to study the effects of this policy. To this end, the quadratic almost ideal demand system was applied. This model has been estimated using the consolidated data and Iterated Linear Least Squares Estimator and the information of more than 165,000 urban households in Iran for the years 1386-1394 and for different provinces. The results of the research show that during the studied years, bread is an essential good for all provinces except in Isfahan, Chaharmahal o Bakhtyari, and Kohgilouye. The compensated and uncompensated price elasticities of bread for all provinces are negative and less than one, so the bread is an inelastic good for all provinces. Also, the coefficients related to household size, gender, and marital status of the head of household and the target law of subsidies are positive and significant.

Keywords: Bread Demand, Quadratic Almost Ideal Demand System, Socio-Economic Variables, Iterated Linear Least squares Estimator, Reforming Subsidies
Full-Text [PDF 362 kb]   (163 Downloads)    
Type of Study: Original Research - Theoric | Subject: Microeconomics
Received: 15 Sep 2019 | Accepted: 7 Mar 2020 | Published: 14 Apr 2020

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Volume 14, Issue 4 (Fall 2019) Back to browse issues page