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Modelling Regional Consumption Patterns in Australia

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  • Eliyathamby A. Selvanathan
  • Saroja Selvanathan
  • Lucille Wong
  • Maneka Savithri Jayasinghe

Abstract

In 1977, Stigler and Becker hypothesised that ‘tastes neither change capriciously nor differ importantly between people’. In an interregional context, this implies that irrespective of differences in income and geography, consumers in different regions are similar. Studies conducted 25 years ago using data for Australian states found support for this hypothesis. However, due to the changing ethnic composition of the population in the states of Australia, differences in consumption patterns between states are emerging. Using recent regional consumption data and demand models, we investigate in this study whether there are regional disparities across the six Australian states, and find that there are in fact differences.

Suggested Citation

  • Eliyathamby A. Selvanathan & Saroja Selvanathan & Lucille Wong & Maneka Savithri Jayasinghe, 2021. "Modelling Regional Consumption Patterns in Australia," The Economic Record, The Economic Society of Australia, vol. 97(317), pages 141-156, June.
    • Handle: RePEc:bla:ecorec:v:97:y:2021:i:317:p:141-156
    DOI: 10.1111/1475-4932.12602
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    References listed on IDEAS

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    1. Kenneth W. Clements, 2019. "Four Laws of Consumption," The Economic Record, The Economic Society of Australia, vol. 95(310), pages 358-385, September.
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    Cited by:

    1. Kenneth W Clements, 2023. "Tastes," Economics Discussion / Working Papers 23-01, The University of Western Australia, Department of Economics.
    2. Kenneth W Clements & Yihui Lan & Haiyan Liu & Long Vo, 2022. "The Icp, Ppp And Household Expenditure Patterns," Economics Discussion / Working Papers 22-18, The University of Western Australia, Department of Economics.

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