Analysis of vegetable oil demand and its price reform in Iran: using rural and urban household level data

In a group of food types, vegetable oils are the second-largest source energy in human diet and their consumption is very important from health economic viewpoint. Consumer behavior evaluation can help lot adopting right policies; so, framework Almost Ideal Demand System model for expenditures was used to examine rural urban oil consumer Iran using household survey data conducted by Iranian Statistical Institute 2018 year. For this purpose, income, price cross-price elasticities under ten aggregated groups i.e., Cereal, Meat, Dairy, Butter Animal Oil, Vegetable Fruits Nuts, Vegetables Legumes, Sugary, Spices and, Dinks were estimated Seemingly Unrelated Regression. The obtained results showed that concerning positive income necessity goods both (0.872) (0.889) consumers. Own-price revealed demand less responsive increase areas (-0.280) than area (-1.073). Moreover, Oils highly substitutable with Since absolute value often an entity, consumers will not have noticeable change as prices other groups. Due reform, per capita compensation payments typical person would be greater person. suggest policymakers should adopt different policies about oil.