Estimating an Almost Ideal Demand System Model for Meats in Iran

This paper presents a dynamic form of the almost ideal demand system (AIDS). The static AIDS model was employed to determine long-run equilibrium model and represents the short-run dynamics by an error correction mechanism. This estimation procedure is applied to estimate three kinds of popular meats (red meat, chicken and fish) demand function in Iran. The estimated elasticities of red meat and chicken are found to be price elastic in the long run. While fish is price inelastic in the long run. Iranian government will remove all indirect and direct goods subsidies. It is suggested that government should be careful about chicken and red meat pricing policy to decreasing malnutrition after subsidy removal