[b] Food Price Change and its Welfare Impact on Iranian Households[/b]
Journal Title: International Journal of Agricultural Management and Development - Year 2014, Vol 4, Issue 4
Abstract
Iran has experienced high food prices in recent years. This paper examines the welfare impacts of rising major food groups' prices on Iranian urban households using Quadratic Almost Ideal Demand System (QUAIDS) approach. The elasticity coefficients derived from QUAIDS are used to estimate Compensated Variations (CV).The study uses Iranian Household Expenditure and Income Survey (HEIS) raw data, encompassing both low and high price periods. Prices of all food and agricultural products increased during the entire survey period of 2004 to 2012. Based on our estimates, the food groups of cereals, dairy products, vegetable and pulses, Potables and Spices are necessary goods, as their budget elasticity is positive and below one at the same time. Meat, edible oils, fruits and dried fruits and Sugary products are luxury goods, with income elasticity above one. We find that the remarkable increases in food prices resulted in severe erosion of purchasing power for the Iranian urban households and they need to be compensated on average about 48% of their initial income for the food price changes they faced during the 2004 and 2012. In addition the high share of cereals in year 2012 implies that urban households shift their consumption to cheaper calorie source. This figure is confirmed with the decline in the share of meat, dairy Products, fruits and dried fruits, vegetables and pulses and potables expenditure.
Authors and Affiliations
Mohammad Ghahremanzadeh, Mohammad Bagher Ziaei
Keywords
Related Articles
- EP ID EP121872
- DOI -
- Views 114
- Downloads 0
Comparative Cost Structure and Yield Performance Anzlysis of Upland and Mangrove Fish Farms in Southwest, Nigeria
The bias against mangrove areas in siting fish farms prompted a comparison of the cost structure and yield performance in upland and mangrove locations. Tools utilized included descriptive statistics...
[b]Implication of Micronutrients in Agriculture and Health with Special Reference to Iron and Zinc[/b]
The green revolution fulfilled the food demand of crowded millions. From the time of green revolution to till date high yielding and fertilizer responsive varieties have evolved to increase the production per unit area....
[b] Assessing the Process of Extension Program Development in Iranian Agricultural Extension System[/b]
The purpose of this study was to assess the process of extension program development in Iranian Agricultural Extension System (IAES). The research instrument was a structural questionnaire with close...
[b]The Sustainability Practices among Dairy Farmers: The Case of Johor[/b]
Sustainability concept in agriculture is becoming widespread throughout industriesin many fields even in crop production, livestock production and etc. Sustainable in agriculture is believed can give present and...
[b]Development Strategies for Rural Tourism in Mishkhas Village[/b]
Rural tourism is a factor in multidirectional development of rural areas and its most important consequences are population stability, unemployment problem alleviation, and immigration reduction. The present survey was s...