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Abstract

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 \Tban 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
JEL Classification: D12

Keywords