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

Author

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  • 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.)

Abstract

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.

Suggested Citation

  • Umar Farooq & Trevor Young & Muhammad, 1999. "An Investigation into the Farm Households Consumption Patterns in Punjab, Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 38(3), pages 293-305.
  • Handle: RePEc:pid:journl:v:38:y:1999:i:3:p:293-305
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    References listed on IDEAS

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    1. 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.
    2. 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.
    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. Giancarlo Moschini, 1995. "Units of Measurement and the Stone Index in Demand System Estimation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(1), pages 63-68.
    5. 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 511-515, August.
    6. 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.
    7. 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.
    8. 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.
    9. Bollino, Carlo Andrea, 1987. "Gaids: a generalised version of the almost ideal demand system," Economics Letters, Elsevier, vol. 23(2), pages 199-202.
    10. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
    11. 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.
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    Cited by:

    1. Farooq, Umar & Iqbal, Mhuhammad & Ahmad, Munir, 2007. "Livestock Farming in Cholistan Desert of Pakistan: Setting the Development Strategies," MPRA Paper 72944, University Library of Munich, Germany, revised 2007.
    2. Haider, Adnan & Zaidi, Masroor, 2017. "Food Consumption Patterns and Nutrition Disparity in Pakistan," MPRA Paper 83522, University Library of Munich, Germany.
    3. Sohail Jehangir Malik & Hina Nazli & Edward Whitney, 2015. "Food Consumption Patterns and Implications for Poverty Reduction in Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 54(4), pages 651-670.
    4. repec:pid:journl:v:55:y:2016:i:4:p:921-943 is not listed on IDEAS

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