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Household Consumption and Saving Behaviour in Pakistan: An Application of the Extended Linear Expenditure System

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  • M SHAUKAT ALI

    (Ministry of Finance, Government of Pakistan)

Abstract

The paper aims at developing a complete set of income and price elasticities of household consumption and saving for Pakistan by applying the Extended Linear Expenditure System (ELES) to the data of the 1979 Household Income and Expenditure Su\"ey. Items like Rent on Housing, Furniture & Fixture, Education, Recreation, and Travelling & Transportation were found to be income-elastic as well as fairly sensitive to changes in (own) prices. As regards the cross-price effects, food prices turned out to be the most important determinant of demand for all other commodities and also of total expenditure (hence of saving). Expenditure on education is particularly affected by the rising cost of food.

Suggested Citation

  • M Shaukat Ali, 1985. "Household Consumption and Saving Behaviour in Pakistan: An Application of the Extended Linear Expenditure System," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 24(1), pages 23-37.
    • Handle: RePEc:pid:journl:v:24:y:1985:i:1:p:23-37
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    File URL: http://www.pide.org.pk/pdf/PDR/1985/Volume1/23-37.pdf
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    Citations

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    Cited by:

    1. Eatzaz Ahmad & Muhammad Arshad, 2007. "Household Budget Analysis for Pakistan under Varying the Parameter Approach," Microeconomics Working Papers 22180, East Asian Bureau of Economic Research.
    2. Abid A. Burki, 1997. "Estimating Consumer Preferences for Food, Using Time Series Data of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 36(2), pages 131-153.
    3. Lubna Naz & Munir Ahmad & G.M Arif, 2018. "Estimating Food Demand System and Rural Household Welfare: A Case study from Pakistan," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 10(4), pages 55-82, December.
    4. Haider, Adnan & Zaidi, Masroor, 2017. "Food Consumption Patterns and Nutrition Disparity in Pakistan," MPRA Paper 83522, University Library of Munich, Germany.
    5. Adeeba Ishaq & Mahmood Khalid & Eatzaz Ahmad, 2018. "Food Insecurity in Pakistan: A RegionWise Analysis of Trends," PIDE-Working Papers 2018:157, Pakistan Institute of Development Economics.
    6. N. A. Burney & M. Akmal, 1991. "Food Demand In Pakistan: An Application Of The Extended Linear Expenditure System," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(2), pages 185-195, May.
    7. Umar Farooq & Trevor Young & Muhammad, 1999. "An Investigation into the Farm Households Consumption Patterns in Punjab, Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(3), pages 293-305.
    8. Aziz, Babar & Malik, Shahnawaz, 2006. "Surmising Consumer Demand System & Structural Changes Using Time Series Data," MPRA Paper 22911, University Library of Munich, Germany, revised 2006.
    9. Mehboob Ahmad & Tasneem Asghar, 2004. "Estimation of Saving Behaviour in Pakistan Using Micro Data," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 9(2), pages 73-92, Jul-Dec.
    10. Alok Kumar Pandey, 2014. "Measuring Energy Intensity and Elasticity in India: A Dummy Variable Approach for Unit Level Household Data," Jindal Journal of Business Research, , vol. 3(1-2), pages 77-92, June.

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