HOUSEHOLD EXPENDITURE PATTERNS IN CANADA*

Cntroduction The main purpose of this study is to analyze the Canadian household’s’ regional and sectoral expenditure patterns for major groups of commodities and services using cross-sectional data. Specifically, the objectives are: (1) To put forth a set of consumption functions and Engel’s curve parameters which take advantage of the most current data. Reliable estimates of these parameters would enable policymakers to forecast2 reactions of consumers (or households) to changes in factors which are likely to influence their expenditure patterns. (2) To test the hypotheses of differential expenditure patterns among (a ) urbanization groups (urban, rural non-farm and rural farm families), and (b ) among various regions (Atlantic, Quebec, Ontario, Prairie, and British Columbia). Such information may be instrumental in identifying factors affecting economic growth and development, and are a necessary input for the formulation of rational regional economic policy. The discussion proceeds as follows. Part 1 provides a brief description of the model on which the results are based. Part 2 contains a discussion of the data source. The main empirical results are presented in Part 3. Finally, some concluding observations with regard to both the empirical results and the methods employed in obtaining them are presented.