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estimating an almost ideal demand strongsystem modelstrong for meats in
Estimating an Almost Ideal Demand System Model for Meats in Iran
Marzieh Motallebi
Research Assistant
Department of Ag. Res. Econ.
Colorado State University
marziehmotallebi@
OR
motalebi@
Dustin L. Pendell
Associate Professor
Department of Ag. Res. Econ.
Colorado State University
dustin.pendell@
Selected Paper Prepared for presentation at the Agricultural Applied Economics
Association鈥檚 2013 AAEACAES Joint Annual Meeting, Washington, D.C., August 4-6, 2013
Copyright 2013 by Marzieh Motallebi and Dustin L. Pendell. All rights reserved. Readers
may make verbatim copies of this document for non-commercial purposes by any means,
provided that this copyright notice appears on all such copies.
1
Estimating an Almost Ideal Demand System Model for Meats in Iran
Abstract
This paper presents a dynamic form of the almost ideal demand system (AIDS). The static
AIDS model was employed to determine long-run equilibrium model and represents the
short-run dynamics by an error correction mechanism. This estimation procedure is applied to
estimate three kinds of popular meats (red meat, chicken and fish) demand function in Iran.
The estimated elasticities of red meat and chicken are found to be price elastic in the long
run. While fish is price inelastic in the long run. Iranian government will remove all indirect
and direct goods subsidies. It is suggested that government should be careful about chicken
and red meat pricing policy to decreasing m
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