A Critical Review of Almost Ideal Demand System (AIDS) Application in Consumer Demand Analysis with an Example to Kohghilouye-and- Bouyerahmad Province Households

Document Type : Research Paper

Author

Ph.D. Student in Economics, Isfahan University

Abstract
The main purpose of this paper is to critically review the studies applied the AIDS model to study of the Iranian demand for different goods and services. The survey finds that the results obtained by these studies are not reliable. These studies use the unsuitable linear approximation index, inappropriate estimation methods and computation formula for estimating own-price elasticity. Addressing those problems, we analyze the consumer behavior using the demand system in the rural and urban areas of the Kohkilouye - and – Bouyerahmad province of Iran.

Keywords


  • Receive Date 14 May 2016
  • First Publish Date 14 May 2016