Empirical regularities in South African consumption patterns
This article investigates a number of empirical regularities in the South African consumption patterns. The data support the following empirical regularities: (1) variability in consumption systematically exceeds the variability in prices; (2) law of demand; (3) income flexibility is about -0.5; (4) Engel's law; and (5) the demand hypotheses, demand homogeneity and Slutsky symmetry are acceptable. In contrast to the findings for a number of other countries, another important empirical regularity that consumer's utility function is additive is rejected for the South African consumers. Based on the implied demand elasticity estimates from the preferred model, it is found that food, housing and medical care are necessities, and clothing, furniture, transport and recreation are luxuries and demand for all the commodities are price inelastic.
Volume (Year): 36 (2004)
Issue (Month): 20 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RAEC20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RAEC20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kenneth Clements & Wana Yang & Dongling Chen, 2001.
"The matrix approach to evaluating demand equations,"
Taylor & Francis Journals, vol. 33(8), pages 957-967.
- K.W. Clements & W. Yang & D. Chen, 1998. "The Matrix Approach to Evaluating Demand Equations," Economics Discussion / Working Papers 98-10, The University of Western Australia, Department of Economics.
- Clements, Kenneth W & Selvanathan, Antony & Selvanathan, Saroja, 1996.
"Applied Demand Analysis: A Survey,"
The Economic Record,
The Economic Society of Australia, vol. 72(216), pages 63-81, March.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
- Clements, Kenneth W., 1982. "Divisia moments of Australian consumption," Economics Letters, Elsevier, vol. 9(1), pages 43-48.
- Finke, Renate & Flood, Lennart R. & Theil, Henri, 1984. "Maximum likelihood and instrumental variable estimation of a consumer demand system for Japan and Sweden," Economics Letters, Elsevier, vol. 15(1-2), pages 13-19.
- Keller, W.J. & Van Driel, J., 1985. "Differential consumer demand systems," European Economic Review, Elsevier, vol. 27(3), pages 375-390.
When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:36:y:2004:i:20:p:2327-2333. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.