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Rural-Urban Differences and the Stability of Consumption Function Behaviour

Author

Listed:
  • Malik, Sohail J
  • Abbas, Kalbe
  • Ghani, Ejaz

Abstract

The paper presents an analysis of the entire data generated by the Household Income and Expenditure Surveys from 1963-64 to 1984-85. Using appropriate econometric techniques tests are conducted to determine the possibility of pooling rural and urban data to get overall estimates for different commodity groups in different years. The results verify Engel’s law of a decline in marginal food expenditures as income rises, and constancy in marginal expenditures on clothing, footwear and fuel and lighting. Tests for the similarity of yearly functions reveal that it would not be possible to pool the data for different years.

Suggested Citation

  • Malik, Sohail J & Abbas, Kalbe & Ghani, Ejaz, 1987. "Rural-Urban Differences and the Stability of Consumption Function Behaviour," MPRA Paper 6755, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:6755
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    File URL: https://mpra.ub.uni-muenchen.de/6755/1/MPRA_paper_6755.pdf
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    References listed on IDEAS

    as
    1. Aftab Ahmad Cheema & Muhammad Hussain Malik, 1985. "Changes in Consumption Patterns and Employment under Alternative Income Distributions in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 24(1), pages 1-22.
    2. A.N.M. Azizur Rahman, 1963. "Expenditure Elasticities in Rural West Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 3(2), pages 232-249.
    3. Feng-Yao Lee & Keith E. Phillips, 1971. "Differences in Consumption Patterns of Farm and Nonfarm Households in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 53(4), pages 573-582.
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    Cited by:

    1. Haider, Adnan & Zaidi, Masroor, 2017. "Food Consumption Patterns and Nutrition Disparity in Pakistan," MPRA Paper 83522, University Library of Munich, Germany.

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    JEL classification:

    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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