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Regional Consumption Patterns in Australia: A System-Wide Analysis

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  • Selvanathan, Saroja

Abstract

This paper uses consumption data for eight commodity groups to present a systemwide analysis of consumption patterns in the six states of Australia. The author tests the hypotheses of demand homogeneity, Slutsky symmetry, and preference independence using Monte Carlo simulation techniques and finds general acceptance of these hypotheses for the six states. The paper also presents demand elasticities for the eight commodity groups in each state. The author finds, overall, food, clothing, and housi ng commodity groups are necessities while durables, medical care, transport, and miscellaneous groups are luxuries. He also finds evidence in support of similarity of consumption patterns across the six Australian states. Copyright 1991 by The Economic Society of Australia.

Suggested Citation

  • Selvanathan, Saroja, 1991. "Regional Consumption Patterns in Australia: A System-Wide Analysis," The Economic Record, The Economic Society of Australia, vol. 67(199), pages 339-345, December.
  • Handle: RePEc:bla:ecorec:v:67:y:1991:i:199:p:339-45
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    References listed on IDEAS

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    Cited by:

    1. Clements, Kenneth W. & Gao, Grace, 2015. "The Rotterdam demand model half a century on," Economic Modelling, Elsevier, vol. 49(C), pages 91-103.
    2. Brox, James A., 2003. "The impact of free trade with the United States on the pattern of Canadian consumer spending and savings," The North American Journal of Economics and Finance, Elsevier, vol. 14(1), pages 69-87, March.
    3. K.W. Clements & Y. Qiang, 1998. "A New Input-output Table for Western Australia - Part 2," Economics Discussion / Working Papers 98-16, The University of Western Australia, Department of Economics.

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