Aggregate and Regional Demand Response Patterns in Pakistan

Ehtisham Ahmad, Stephen Ludlow


The econometric analysis of demand in Pakistan has, until
recently, been a relatively neglected field of analysis. Much of the
earlier work, reviewed in Ali (1985), consists of linear Engel curves
based on grouped data published by the Bureau of Statistics. Ahmad,
Leung and Stern (1984), and Ahmad, Ludlow and Stern (1987) use household
observations from the 1976 Micro-Nutrient Survey (MNS), to estimate 17
(9 of which are food items) and 13 commodity parameters and elasticities
based on a modified linear Expenditure System (LES) using Maximum
likelihood methods. The modified LES is a method of obtaining LES
parameters without independent price information, analogous to the ELES.
This method differs from the ELES in that expenditure information is
used, rather than income, see Ahmad, Ludlow and Stern (1987) for

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