1- Assistant Professor of Management and Rural Development, Faculty of Agriculture, Shahrekord University, Iran , ghasem.layani@sku.ac.ir
2- Assistant Professor of Management and Rural Development, Faculty of Agriculture, Shahrekord University, Iran
2- Assistant Professor of Management and Rural Development, Faculty of Agriculture, Shahrekord University, Iran
Abstract: (225 Views)
This study attempts to investigate the welfare effects of the multiple meat price shocks in consumers' different income and age groups due to the price liberalization policy. This is achieved by using Compensating Variation welfare index (CV) and Hicksian price elasticities, based on the Almost Ideal Demand System (AIDS) and the cost-income data of 17931 urban households in Iran. The results showed that the difference in meat's own-price elasticity for consumers of different ages decreases with the improvement of consumers' income status. The absolute own-price elasticity of poultry varied between 0.072-0.559 percent. The highest sensitivity of poultry meat demand to price changes was observed in high-income consumer groups. As well as the red meat demand sensitivity to price changes for all age groups declines along with raised income. The fish own-price elasticity for all consumers was more than one and their differences were more significant for low-income consumers. The CV index of consumers varied between 29 and 78% and confirmed the hypothesis of difference in the consumers' vulnerability in different age and income groups. Separating the welfare effect by consumer groups based on income and age indicated that low-income and younger consumers experience a higher welfare loss compared to low-income and older consumers. Finally, to accurately target the subsidies, the government can pay a certain amount of subsidy to each person according to the economic and social characteristics to prevent the wastage of resources and reach the desired goal.
Article Type: Original Research |
Subject:
Agricultural Economics/Agriculture Policy and price Analysis
Received: 2023/02/19 | Accepted: 2023/10/15 | Published: 2024/03/31
Received: 2023/02/19 | Accepted: 2023/10/15 | Published: 2024/03/31
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