Comparison of Consumer Allocation Models: AIDS and CBS Using Consumption Expenditure Data of Urban Households In Iran

The functional form of the consumer allocation models should be to satisfy theoretical properties derived from the theory consumer demand and it must be able to explain the behavior of the consumer and the realized facts by the real data. At the first part of this paper, we have explained some of the theoretical characteristics of the consumer demand theory, then 4 different systems approach that explain the behavior of the consumer have been studied and hybrid model of CBS and NBR has been introduced. At the second part of this paper, an empirical study has taken place by using consumption expenditure data of the urban households in Iran during the period 1971-2001. The result shows that CBS model is more consistent than other models with theoretical properties of the demand.