Open AccessHousehold Consumption and Saving Behaviour in Pakistan: An Application of the Extended Linear Expenditure System
Author(s) -
M. Shaukat Ali
Publication year - 1985
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/v24i1pp.23-37
Subject(s) - economics , consumption (sociology) , aggregate expenditure , recreation , consumer expenditure survey , engel curve , agricultural economics , labour economics , microeconomics , public economics , social science , sociology , political science , law
The paper aims at developing a complete set of income andprice elasticities of household consumption and saving for Pakistan byapplying the Extended Linear Expenditure System (ELES) to the data ofthe 1979 Household Income and Expenditure Survey. Items like Rent onHousing, Furniture & Fixture, Education, Recreation, and Traveling& Transportation were found to be income-elastic as well as fairlysensitive to changes in (own) prices. As regards the cross-priceeffects, food prices turned out to be the most important determinant ofdemand for all other commodities and also of total expenditure (hence ofsaving). Expenditure on education is particularly affected by the risingcost of food.