A Complete Set of Consumption Coefficients for West Pakistan

Willem C. F. Bussink

Abstract


In this paper, a set of coefficients is derived which can be
used to project West Pakistan's private consumption in the medium and
longer term. For ten urban and rural income groups separately, income,
price and cross elasticities of demand have been calculated. Thus, the
methodology permits to trace the influence of changes in incomes, income
distribution and prices on consumption. 1.2 Most development models
concern themselves with aggregate income effects only, and assume
constant income distribution and prices. This may be warranted as long
as no structural shifts occur. Insofar as development implies structural
shifts, there may be an inconsistency. Apart from this, the attainment
of a more equitable income distribution is more and more being
emphasized as an independent goal of socio-economic planning. Changes in
distribution are more often than not at least partly the result of
changes in relative prices. Obviously, then, both incomes and prices
must be included in the planning framework if anything is to be said
about the effect of planned development on equity.

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DOI: https://doi.org/10.30541/v10i2pp.193-231

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