Open AccessA Complete Set of Consumption Coefficients for West Pakistan
Author(s) -
Willem C. F. Bussink
Publication year - 1970
Publication title -
pakistan development review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.154
H-Index - 26
ISSN - 0030-9729
DOI - 10.30541/v10i2pp.193-231
Subject(s) - economics , consumption (sociology) , equity (law) , income distribution , distribution (mathematics) , engel curve , econometrics , demographic economics , price index , inequality , mathematics , mathematical analysis , social science , sociology , political science , law
In this paper, a set of coefficients is derived which can beused to project West Pakistan's private consumption in the medium andlonger term. For ten urban and rural income groups separately, income,price and cross elasticities of demand have been calculated. Thus, themethodology permits to trace the influence of changes in incomes, incomedistribution and prices on consumption. 1.2 Most development modelsconcern themselves with aggregate income effects only, and assumeconstant income distribution and prices. This may be warranted as longas no structural shifts occur. Insofar as development implies structuralshifts, there may be an inconsistency. Apart from this, the attainmentof a more equitable income distribution is more and more beingemphasized as an independent goal of socio-economic planning. Changes indistribution are more often than not at least partly the result ofchanges in relative prices. Obviously, then, both incomes and pricesmust be included in the planning framework if anything is to be saidabout the effect of planned development on equity.