Author

Dept of Economics, Faculty of Marine Economics and Management, Khorramshahr University of Marine and Sciences, Khorramshahr, Iran.

Abstract

In this article Iranian expenditure for dairy is estimated using rural and urban income expenditure survey of 1388. The aim is to examine the factors affecting participation and consumption decision for dairy food on Iranian households. So, we applied box- cox double hurdle modeling adjusted for heteroscedasticity and non normality. Subsequently utilizing the estimated coefficients with STATA programming, expenditure elasticities were calculated at the mean and the margin. Results indicate the effects of demographic variables such as age, urban or rural, education, and household size on dairy expenditure. also, economic variables such as own price, household's income and dairy price index can be affect the dairy expenditure payed by each household.

Keywords