Estimation of income elasticity of urban families’ demands for public education in cities

Current article is allocated to the report of a research in which the income elasticities of urban families” demand for public education in time period of 2008-2013 were estimated separately according to the income deciles and by applying Rotterdam Demand System, it was clarified that public education is normal commodity. Different size of estimative elasticities indicated that public education is necessary for the families belonged to the sixth and tenth income deciles and it is lux for first to fifth income deciles and it can be expected that if the income of families belonged to the first to fifth deciles faces with reduction, mentioned families for one percent reduction of income will reduce their demand for public education more than one percent and they will consume the related sources for necessary commodities and services. In contrast, the families belonged to the sixth to tenth deciles reduce the share of lux commodities and services in their cost basket so that not to be forced to reduce their public education costs proportional with income reduction. Therefore, the effective policies on families” income should be compiled and executed in a manner that not to cause to reduce the demand of families for education and especially groups with low and medium income.