In this article, the demand functions for cinema in different provinces are estimated using the Almost Ideal Demand System. Then price and income elasticity are calculated for each province and for the entire country.
The obtained results show that price elasticity for the entire country is equal to -0.91; and in the provinces except for Isfahan, Hormozgan, Kerman, Kurdistan, Mazandaran, and Eastern Azerbaijan, it is less than 1, which implies price inelasticity.
Price elasticity crossed between journals and cinema, in each of the 9 provinces of Kohgilooyeh va Boyrahamd, Chahar Mahalo Bakhtiary, Isfahan, Ilam, Fars, Gilan, Hamedan, Yazd, and Zanjan, is negative, that means the goods could substitute for each other in consumption. But, in other provinces, the elasticity is positive; thus, the goods complement each other in consumption. The elasticity for the entire country is equal to -0.12.
The price elasticity crossed between books and cinema for the entire country is -47%. Also, it is negative for each province, which means the two commodities substitute for each other in consumption.
The income elasticity for all the provinces is positive and stands between zero and one; and for the entire country it is 57%, which means going to movies is considered a necessary commodity.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
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