Estimation of Almost Ideal Demand System on Major Food Items In Erbil In Year 2012

Main Article Content

Sabr Perdawd Othman
Aveen Abdulqahar AbdalMajeed

Keywords

Estimation, Ideal Demand System (AIDS), OLS

Abstract

  The current study is based on the estimation of a standard model to determine the quantitative relationship between expenditure on major food items.as a dependent variable with explanatory variables that affecting it with an emphasis on the impact of price and income. To achieve this goal Almost Ideal Demand System (AIDS) was used to estimate demand functions for seven major food items in Erbil governorate for the year (2012), which accounts for about (%95) of food expenditure depending on household survey data by using the method (OLS). The elasticities of expenditure, self-price and cross-price were derived for studied food items. Generally, according to theoretical, statistical and standard criteria, the result of the study are satisfactory, where the size and signal of the elasticities derived from the estimated standard models coincided with the hypotheses of the study and with the concepts of economic theory.  This study has concluded with a number of conclusions and recommendations based on estimated model estimation results.

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References

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