A DISTRICT LEVEL ESTIMATION OF CONSUMPTION FUNCTION IN ASSAM
DOI:
https://doi.org/10.53555/bma.v8i4.2474Keywords:
Consumption, function, IHDS-II, OLS, examinationAbstract
In this research endeavor, we conducted a meticulous examination of the determinants of household consumption
expenditure through the utilization of the Ordinary Least Squares (OLS) technique applied to a log-linear model. Our
investigation concentrated on eight districts in Assam, namely Dhubri, Goalpara, Kamrup, Morigoan, Tinsukia, Jorhat,
Karbi Anglong, and Cachar, utilizing the comprehensive India Human Development Survey 2012 (IHDS) dataset. The
empirical outcomes underscore that various factors, including household income, assets, education, family size, and
household loans, exert a significant and positive influence on the overall household consumption expenditure. Intriguingly,
age exhibits a negative impact on household consumption expenditure. Additionally, a set of dummy predictors,
encompassing variables such as religion and seasonal migration, were incorporated into the analysis. A pivotal finding
emerging from our study revolves around the conspicuous correlation between the proclivity towards household
consumption expenditure and the acquisition of household loans. This revelation underscores the interconnectedness of
borrowing behaviors and consumption patterns within households
Downloads
References
Basumatary , S. (2015). An Analysis of Consumption Expenditure Pattern among theBodo Tribe: A Case Study .
International Research Journal of Interdisciplinary & Multidisciplinary Studies (IRJIMS), 1(5), 42-48.
Khan, K., Anwar, S., Ahmed, M., & Kama, M. (2015). Estimation of consumption functions: the case of Bangladesh,
India, Nepal, Pakistan and Sri Lanka. Pakistan Business Review, 17(1), 113-124.
Becker, G. (1965). A Theory of the Allocation of Time. The economic journal, 75(299), 493-517.
India: Household consumption, percent of GDP. (n.d.). Retrieved 1 14, 2024, from The globle economy.com:
https://www.theglobaleconomy.com/India/household_consumption/#:~:text=Household%20co
nsumption%20as%20percent%20of%20GDP&text=For%20that%20indicator%2C%20we%20prov
ide,from%202022%20is%2060.55%20percent.
(2002). M. Jhingan, Macroeconomic theory (10th revised ed.). Delhi,India : Vrinda Publications (P) ltd.
Kasturi, A., Bhattarai, K., Prasuna, A., & Siva Kumar, S. (2023). Consumption Functions of India: Pre and Post Covid19. JOURNAL OF DEVELOPMENT ECONOMICS AND FINANCE, 4(2), 451-463.
Samantaraya, A., & Patra, S. K. (2014, 7 16). Determinants of Household Savings in India:An Empirical Analysis
Using ARDL Approach. Economics Research International.
Varman, P., & Kumar, N. (2020). Impact of MGNREGA on consumption expenditure of households. Economic &
Political Weekly, 55(39), 49-54.
Keynes, J. M. (1937). The general theory of employment. The quarterly journal of economics, 51(2), 209-223.
Friedman, M. (1957). The permanent income hypothesis. In A theory of the consumption function (pp. 20-37).
Princeton University Press.
Ando, A., & Modigliani, F. (1963). The" life cycle" hypothesis of saving: Aggregate implications and tests. The
American economic review, 53(1), 55-84.
Duesenberry, J. S. (1949). Income, saving and the theory of consumer behavior. (No Title).
Ajayi, S. I. (1974). An econometric case study of the relative importance of monetary and fiscal policy in Nigeria. The
Bangladesh Economic Review, 2(2), 559-576.
Hall, R. E. (1978). Stochastic implications of the life cycle-permanent income hypothesis: theory and evidence. Journal
of political economy, 86(6), 971-987.
Deaton, A. (1992). Understanding consumption. Oxford University Press.
Carroll, C. D. (1997). Buffer-stock saving and the life cycle/permanent income hypothesis. The Quarterly journal of
economics, 112(1), 1-55.
Campbell, J. Y., & Mankiw, N. G. (1989). Consumption, income, and interest rates: Reinterpreting the time series
evidence. NBER macroeconomics annual, 4, 185-216.
Dynan, K. E. (2000). Habit formation in consumer preferences: Evidence from panel data. American Economic
Review, 90(3), 391-406.
Browning, M., & Collado, M. D. (2001). The response of expenditures to anticipated income changes: panel data
estimates. American Economic Review, 91(3), 681-692.
Chioma, N. J. (2009). Causal relationship between gross domestic product and personal consumption expenditure of
Nigeria. African Journal of Mathematics and Computer Science Research, 2(8), 179-183.
Mishra, P. K. (2011). The dynamics of relationship between exports and economic growth in India. International
Journal of Economic Sciences and Applied Research, 4(2), 53-70.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 International Journal For Research In Business, Management And Accounting
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
All journals related to business, management, and accounting can be freely copied, circulated, and reprinted in Green Publication journals, as long as they are duly referenced by original authors. Green Publication follows CC licenses. “A Creative Commons (CC) license is one of the public copyright licenses that allows for the free reuse of an otherwise copyrighted "work." If an author wants to give others the right to publish, use, and build on a work created by the author, he may use a CC license. Green publication use the CC 4.0 license. This license allows anyone to write, remix, tweak, and build on your work, even commercially, as long as the original creation is attributed to you”. This is the most appropriate license available. Recommended for increasing the distribution and use of licensed products.
