Showing 4 results for Almost Ideal Demand System
Ali Askari, Gholamreza Geraienejad, Hanie Samavati,
Volume 20, Issue 13 (6-2012)
Abstract
Considering the equity and efficiency aspects, this article assesses the rate of Value Added Tax on household consumption basket. As the standard approach to determine desirable directions of tax reforms is in harmony with the approach to compute the marginal social welfare cost, first marginal social welfare cost is calculated, and its inverse which is the marginal social tax productivity has been used for ranking of goods in various levels of inequality aversion coefficient and desirable tax rates. The calculation of marginal social tax productivity requires price elasticity of different goods. This elasticity is obtained from Almost Ideal Demand System (AIDS) estimation's results. Almost Ideal Demand System estimation is based on household expenditure survey of Iran has been done for period of 1371-1388 by time series' approach. The interpretation of ranking followed here is that goods ranked lower are preferred to goods ranked higher as candidates for additional taxation, goods with high tax appeal are candidates for higher tax rates.
Sahabi Bahram, Hasani Mohsen, Faraji Dizaji Sajjad , Abdoli Ghaharaman ,
Volume 25, Issue 36 (3-2019)
Abstract
Tobacco use imposes health and economic costs both on individuals and society, so it is essential to anticipate plans to control its consumption, by using price policies through tax tools. But in the case of tobacco addiction, there are doubts about the impact of these policies. Therefore, it is necessary to examine the effects of pricing and tax policies by estimating the demand function of smoking and its elasticity. The almost ideal demand system (AIDS) model which is the most effective models is used in this article. The required data were also extracted from cost and income data of the Iranian urban households during the years 2001-2014. Based on the results of estimates, tobacco is a low elasticity good and therefore using taxes doesn’t have much effect on smoking.
Vida Varahrami,
Volume 29, Issue 51 (12-2021)
Abstract
In this study, the calculation of optimal tax rates of energy carriers of urban households is the main objective of the research. To calculate optimal tax rates Ramsey rule in the multiplayer world and Samuelson-Bergson social welfare function is used. In calculating the optimal tax rates to the elasticity of energy prices is considered necessary. This elasticity is derived from the results of an almost ideal system demand estimation. Estimating the demand system based on the data of urban households in Iran for the period from 1383 to 1399 in ten decades, has been done using panel data. The results of the research reveal that when the rate of social inequality is equal to zero, the aspect of the tax efficiency is considered, in which case all energy carriers will be subject to tax. In urban households, gas and oil tax rates are close, but the tax rate on electricity is lower than other energy carriers.
Hamid Reza Farzin Mehr, Mohammad Lashkary , Sadegh Bafandeh Imandoust,
Volume 29, Issue 52 (3-2022)
Abstract
Countering the excessive consumption of carbonated and sugary drinks is pursued due to internal and external consequences in many countries of the world. Price change through tax tools is one of the most important of these policies, the success of which depends to a large extent on the position of beverages among the people of any society. The purpose of this study is to evaluate the potential impact of tax policies on beverages consumption, considering that in the new VAT law the rate is higher than the standard for beverages as a health hazardous commodity. To achieve this goal by seemingly unrelated regression method in the form of an almost ideal quadratic demand system and the use of combined data on the expenditures of Iranian urban households on four commodity groups from 2006 to 2016, the beverage demand function is estimated and then price and income elasticities is Calculated. The results show that beverages in the consumption basket of all deciles of urban households are considered as a product elastic and unnecessary (luxury). Also, the study of welfare effects using the criterion of compensating variation shows that increasing the tax rate does not have much effect on reducing the welfare of consumers and households in high-income deciles suffer the most welfare losses. Therefore, the implementation of tax policies provided for in the new VAT law can have a positive and significant effect on controlling the consumption of beverages.
