Analysing Household Consumption Pattern in Orissa
16 Pages Posted: 13 Jan 2005
Date Written: November 2004
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
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