Estimation of Car Demand in Iranian Market: Using Discrete Choice Model

In this article, car demand in Iranian market has been estimated. At the first, Total demand function was estimated and The results show that car is a highly elastic commodity in Iran. Its price elasticity coefficient and income elasticity coefficient are 1.3 and 2.93, respectively. Furthermore socio-economical parameters affecting car ownership have been analyzed according to Iran household budget data using Discrete choice Models. This research shows how characteristics of household like residential location of household, gender, literacy, marital status and educational level of head of the household and fuel price variations change the probability of car ownership. Results show that Finally, Socio-Economic Parameters Affecting Household Ownership of Different Classes of Cars Have been Analyzed.