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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

Mohammad Ali Motafakkere Azad (), Parviz Mohammadzadeh (), Seyyed Kamal Sadeghi () and Samad Hekmati Farid ()
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Mohammad Ali Motafakkere Azad: University of Tabriz
Parviz Mohammadzadeh: University of Tabriz
Seyyed Kamal Sadeghi: University of Tabriz
Samad Hekmati Farid: University of Urmia

Quarterly Journal of Applied Theories of Economics, 2015, vol. 2, issue 1, 45-62

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.

Keywords: Implicitly Directly Additive Demand System; Engel; Elasticity; Iran; Subsistence Level; AIDADS. (search for similar items in EconPapers)
JEL-codes: D12 I30 I32 (search for similar items in EconPapers)
Date: 2015
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