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Structural Breaks In Consumption Patterns: India, 1952 To 1991

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  • Brinda Viswanathan

    (Delhi School of Economics)

Abstract

The tests for structural breaks in consumption patterns indicate multiple break points which are not uniform across the population groups and also across commodity groups. Further, the results indicate that the breaks could often be induced by the changes in the data collection methodology of the survey and not due to changes in consumer behaviour alone. Apart from this, there is a shift in the consumption pattern during the mid-1980 in both the mral and the urban sectors. For the lowest expenditure class the shift is away from food items with the mral sector showing a change in the price response and the urban sector showing a change in the total expenditure coefficient. For the middle and the upper expenditure classes the shifts are not only from the food items towards non-food items but also from the 'food' group that includes items like cereals, milk and milk products towards the 'other food' group which includes items like vegetables and fruits. Its causes are found to be changes in preferences as well as the income effect.

Suggested Citation

  • Brinda Viswanathan, 1999. "Structural Breaks In Consumption Patterns: India, 1952 To 1991," Working papers 61, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:61
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    References listed on IDEAS

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    1. Ray, Ranjan, 1986. "Sensitivity of `optimal' commodity tax rates to alternative demand functional forms : An econometric case study of India," Journal of Public Economics, Elsevier, vol. 31(2), pages 253-268, November.
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    4. Martin Ravallion & Gaurav Datt, 1996. "India's Checkered History in Fight against Poverty: Are There Lessons for the Future?," Monash Economics Working Papers archive-33, Monash University, Department of Economics.
    5. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
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    More about this item

    Keywords

    Liberalization; Foreign Direct Investment; Granger Causality;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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