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Application of the Implicitly Directly Additive Demand System (AIDADS) in Estimation of Subsistence Level in the Rural and Urban Households of Iran

Author

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  • Motafakkere Azad, Mohammad Ali

    () (University of Tabriz)

  • Mohammadzadeh, Parviz

    () (University of Tabriz)

  • Sadeghi, Seyyed Kamal

    () (University of Tabriz)

  • Hekmati Farid, Samad

    () (University of Urmia)

Abstract

The Subsistence Level and Engel elasticity are most important factors in poverty alleviation programs. In this study we use an Implicitly, Directly Additive Demand System (AIDADS) for measuring subsistence level and Engel elasticity of main groups of commodities in Iran. To that end, we use household level data from the Statistics Center of Iran during the period of 1998-2009. The results show that Engel elasticity for "food, drink and tobacco group", "cloth and shoe group", "residential, water, electricity and fuel group" in urban households and "food, drink and tobacco group", "cloth and shoe group", in rural households are necessity commodities.

Suggested Citation

  • Motafakkere Azad, Mohammad Ali & Mohammadzadeh, Parviz & Sadeghi, Seyyed Kamal & Hekmati Farid, Samad, 2015. "Application of the Implicitly Directly Additive Demand System (AIDADS) in Estimation of Subsistence Level in the Rural and Urban Households of Iran," Quarterly Journal of Applied Theories of Economics, Faculty of Economics, Management and Business, University of Tabriz, vol. 2(1), pages 45-62, April.
  • Handle: RePEc:ris:qjatoe:0003
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    Keywords

    Implicitly Directly Additive Demand System; Engel; Elasticity; Iran; Subsistence Level; AIDADS.;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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