Analysing Household Consumption Pattern in Orissa

16 Pages Posted: 13 Jan 2005

See all articles by Ayan Kumar Pujari

Ayan Kumar Pujari

Indira Gandhi Institute of Development Research (IGIDR)

Date Written: November 2004

Abstract

This paper investigates the the household consumption pattern in rural and urban Orissa during 1999-00 for a basket of twelve commodities and estimates the corresponding Engel functions with Working-Leser methodology. Both in rural and urban areas, cereals, edible oil, vegetables, spices and fuel & light are found to be treated as necessities. Additionally, we find that pulses and beverages are necessities in urban areas. On the other hand, egg, fish & meat, sugar, education and medical are found to be luxuries in both areas. We observe differential impact of household size on household consumption pattern in rural and urban regions. In rural areas, income effect dominates the specific effect in most cases, where as the converse is true for urban areas. This difference can be attributed to the inherent structural difference due to various demographic and social factors. We demonstrate that the factors like occupational status, religion and social groups are helpful in explaining the variation of budget shares of the commodities in most of the cases.

Keywords: Household Consumption Pattern, Engel Curve, Orissa, India

JEL Classification: R10, R20

Suggested Citation

Pujari, Ayan Kumar, Analysing Household Consumption Pattern in Orissa (November 2004). Available at SSRN: https://ssrn.com/abstract=647824 or http://dx.doi.org/10.2139/ssrn.647824

Ayan Kumar Pujari (Contact Author)

Indira Gandhi Institute of Development Research (IGIDR) ( email )

Gen A.K. Vaidya Marg Santoshnagar
Goregaon (East)
Bombay 400065, Maharashtra
India
+91 98 924 27401 (Phone)

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