Household Consumption Patterns in Pakistan:A Rural-Urban Analysis

Babar Aziz and Shahnawaz Malik

Abstract

This paper attempts to analyze various elasticities; expenditure
(income), own-price and household size in relation to a variety
of Aggregate Food Commodity (AFC) groups. The outcome of
this research reflects that most of the estimated elasticities are
significant and reasonable in magnitude. It is observed that
cereal’s group has a fixed position in the menu of the Pakistani
consumers; in both rural and an urban region. The
expenditures on vegetables and meats increase with higher
income in rural areas weigh against the urban areas.
However, the expenditures on fruits, and milk and milk
products are more likely to increase with higher income both
in urban areas than in rural areas. Besides, household size has
a significant impact on household food expenditures. The
expenditures on most food groups increase at a decreasing
rate as household size increases.