Mohammad mowlaei
Abstract
One of the household's economic welfare indices is their consumption mixture during a given period. The aim of this study is to answer this question that has the consumption mixtures of rural households been improved or worse during 1995-2012 compared to 1983-1995? To this end, using time series data ...
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One of the household's economic welfare indices is their consumption mixture during a given period. The aim of this study is to answer this question that has the consumption mixtures of rural households been improved or worse during 1995-2012 compared to 1983-1995? To this end, using time series data on cost proportion of six food and seven non-food commodities, which are published by the Iranian Statistics Center, income elasticity of demand is estimated using panel data method. Using these estimates, commodities are classified into luxuries, necessities and inferiors. Results show that shares of food commodities are reduced and the shares of housing and health are increased in the rural households' consumption basket during 1995-2012. Results also show that most of basic commodities are changed from necessities to luxuries and thus, the rural households' welfare are worse than the previous period.
