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Regional Consumption Patterns in Australia: A System‐Wide Analysis

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Abstract

This paper uses consumption data for eight commodity groups to present a system‐wide analysis of consumption patterns in the six States of Australia. We test the hypotheses of demand homogeneity, Slutsky symmetry and preference independence using Monte Carlo simulation techniques and find general acceptance of these hypotheses for the six States. The paper also presents demand elasticities for the eight commodity groups in each State. We find, overall, food, clothing and housing commodity groups are necessities while durables, medical care, transport and miscellaneous groups are luxuries. We also find evidence in support of similarity of consumption patterns across the six Australian States.

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  • Saroja Selvanathan, 1991. "Regional Consumption Patterns in Australia: A System‐Wide Analysis," The Economic Record, The Economic Society of Australia, vol. 67(4), pages 338-345, December.
    • Handle: RePEc:bla:ecorec:v:67:y:1991:i:4:p:338-345
    DOI: 10.1111/j.1475-4932.1991.tb02563.x
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