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An Investigation into the Farm Households Consumption Patterns in Punjab, Pakistan

  • Umar Farooq

    (Agricultural Economics Research Unit (PARC), Ayub Agricultural Research Institute, Faisalabad.)

  • Trevor Young

    (School of Economic Studies, University of Manchester, Manchester, UK.)

  • Muhammad

    (Agricultural Economics Research Unit (PARC), Ayub Agricultural Research Institute, Faisalabad.)

Registered author(s):

    In the present study, the consumption data of paddy and wheat growing farm households were analysed using the Almost Ideal Demand System (AIDS) model, incorporating the household composition in addition to the usual price/income variables. Although the general restrictions of demand theory were rejected, the overall results were not seriously out of line of a priori expectations. All the own-price elasticities were negative and most of them were significant. Paddy and wheat were found to be gross complements in consumption whereas meat and pulses emerged as gross substitutes. Dairy products and meat were regarded as luxuries by the sample farm households and expenditure on these items was curtailed in response to any addition to household size. Significant quantitative dietary impacts were found associated with change in the age composition of farm households. A more detailed analysis of consumption behaviour of rural families may be merited; this may explore alternative groupings of consumption goods, additional socio-economic factors or use of panel data.

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    File URL: http://www.pide.org.pk/pdf/PDR/1999/Volume3/293-305.pdf
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    Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

    Volume (Year): 38 (1999)
    Issue (Month): 3 ()
    Pages: 293-305

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    Handle: RePEc:pid:journl:v:38:y:1999:i:3:p:293-305
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    1. Bollino, Carlo Andrea, 1987. "Gaids: a generalised version of the almost ideal demand system," Economics Letters, Elsevier, vol. 23(2), pages 199-202.
    2. Moschini, GianCarlo, 1995. "Units of Measurement and the 'Stone Index' In Demand System Estimation," Staff General Research Papers 5058, Iowa State University, Department of Economics.
    3. A.N.M. Azizur Rahman, 1963. "Expenditure Elasticities in Rural West Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 3(2), pages 232-249.
    4. Ehtisham Ahmad & Stephen Ludlow, 1987. "Aggregate and Regional Demand Response Patterns in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 26(4), pages 645-657.
    5. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
    6. Blanciforti, Laura & Green, Richard, 1983. "An Almost Ideal Demand System Incorporating Habits: An Analysis of Expenditures on Food and Aggregate Commodity Groups," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 511-15, August.
    7. Mubarik Ali & Abedullah, 1998. "Supply, Demand, and Policy Environment for Pulses in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 37(1), pages 35-52.
    8. Aftab Ahmad Cheema & Muhammad Hussain Malik, 1985. "Changes in Consumption Patterns and Employment under Alternative Income Distributions in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 24(1), pages 1-22.
    9. Bollino, Carlo Andrea & Violi, Roberto, 1990. "GAITL: A generalised version of the almost ideal and translog demand systems," Economics Letters, Elsevier, vol. 34(2), pages 127-129, October.
    10. Nadeem A. Burney & Ashfaque H. Khan, 1991. "Household Consumption Patterns in Pakistan: An Urban-Rural Comparison Using Micro Data," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(2), pages 145-171.
    11. M Shaukat Ali, 1985. "Household Consumption and Saving Behaviour in Pakistan: An Application of the Extended Linear Expenditure System," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 24(1), pages 23-37.
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