The Demand for Services in India. A Mirror Image of Engel's Law for Food?
India's development experience over the past fifty years suggests that the increasing importance of the services sector deserves analysis. The literature on structural change has emphasised changing patterns of demand as an explanation for the increasing importance of the services sector. In order to establish the significance of private final demand as an explanation for the increasing importance of the services sector in India, this paper estimates Engel curve-type relationships for six categories of services: education, health, entertainment, personal, communication and transport. In doing so, it uses Tobit and censored quantile regressions to analyse household survey data in 1993-94 and 2004-05. We find upward sloping Engel curves which implies that there is a consistent increase in the household budget share allocated to services in the aggregate and to each individual services category as total household expenditure increases. This is a powerful explanation for the increasing share of the services sector.
|Date of creation:||01 Sep 2009|
|Contact details of provider:|| Postal: Manor Rd. Building, Oxford, OX1 3UQ|
Web page: http://www.economics.ox.ac.uk/
More information through EDIRC
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.:
- Geoffrey Lancaster & Pushkar Maitra & Ranjan Ray, 2008. "Household Expenditure Patterns and Gender Bias: Evidence from Selected Indian States," Oxford Development Studies, Taylor & Francis Journals, vol. 36(2), pages 133-157.
- Gustavsen, Geir Waehler & Rickertsen, Kyrre, 2004. "For Whom Reduced Prices Count: A Censored Quantile Regression Analysis Of Vegetable Demand," 2004 Annual meeting, August 1-4, Denver, CO 20172, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Wolfgang HÄRDLE & Michael JERISON, 1991.
"Cross section Engel Curves over Time,"
Discussion Papers (REL - Recherches Economiques de Louvain)
1991045, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- HÄRDLE, Wolfgang & JERISON, Michael, "undated". "Cross section Engel curves over time," CORE Discussion Papers RP 991, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Haerdle,Wolfgang Jerison,Michael, 1988. "Cross section Engel curves over time," Discussion Paper Serie A 160, University of Bonn, Germany.
- Hardle, W. & Jerison, M., 1990. "Cross section Engel curves over time," CORE Discussion Papers 1990016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Falvey, Rodney E & Gemmell, Norman, 1996. "Are Services Income-Elastic? Some New Evidence," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(3), pages 257-269, September.
- Beatty, Timothy K.M., 2006. "Zero Expenditures and Engel Curve Estimation," 2006 Annual meeting, July 23-26, Long Beach, CA 21052, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Gustavsen, Geir Waehler & Jolliffe, Dean & Rickertsen, Kyrre, 2008. "Censored Quantile Regression and Purchases of Ice Cream," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6534, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
When requesting a correction, please mention this item's handle: RePEc:oxf:wpaper:451. 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: (Monica Birds)
If references are entirely missing, you can add them using this form.