International Consumption Comparisons - OECD Versus LDC

Selvanathan, Saroja; Selvanathan, Eliyathamby A.

doi:10.1142/9789812795656

Cited by 15 publications

(31 citation statements)

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“…As can be seen, from the table, for the ten individual groups, all the estimates are negative and range between -0.99 (clothing) and -0.25 (housing), with an income flexibility of -0.52 for all goods combined. The overall average of φ, for the ten broad groups, is -0.55, which is in line with previous empirical findings (see, for example, Theil 1980;Clements et al 2006;Selvanathan and Selvanathan 2003).…”

Section: Divisia Momentssupporting

confidence: 91%

“…A comparison of the quantity variances (K t ), in column (4), with the corresponding price variances (Π t ), in column (5), reveals that, in a majority of years, quantity variance systematically exceeds the price variance. This agrees well with the results of a number of major consumer demand studies (see, for example, Meisner 1979;Theil and Suhm 1981;Chen 2001;Clements 1982Clements , 1983Selvanathan 1993;Selvanathan and Clements 1995;Selvanathan and Selvanathan 2003). Column (6) of Table 4 presents the Divisia price-quantity correlation; it can be seen that, for almost all of the years, the correlation is negative, indicating that there is a negative relationship between price and consumption.…”

Section: Divisia Momentssupporting

confidence: 87%

“…In light of this situation, it is essential to have up-to-date income and price elasticity estimates for Australian consumer goods as they are the key inputs for a number of applications, such as changes to public finance policies and estimation of economy-wide models. A review of the existing literature on the topic identifies that there are few highly influential cross-country studies (Clements and Theil 1996;Houthakker 1957Houthakker , 1965Kravis et al 1982;Leser 1941Leser , 1963Summers and Heston 1984) and few Australian studies (Lluch et al 1977;Lluch and Williams 1975;Selvanathan 1993;and Selvanathan and Selvanathan 2003) which provide an analysis of Australian consumption patterns for the periods 1953-1969, 1946-1968, 1955-1969, 1960-1981 and 1960-1996, respectively. Table 1 presents a summary profile of the Australian economy in 2014 1 .…”

Section: Introductionmentioning

confidence: 99%

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Empirical analysis of Australian consumption patterns

Wong

Selvanathan

2016

Empir Econ

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This paper presents an empirical analysis of Australian private consumption patterns utilising a system-wide approach to analyse how the dominant component, private consumption, is allocated among ten broad groups of consumer goods. Australian consumers, on average, allocate about two-thirds of their income on food, housing, transport and recreation. We considered three demand models, the AIDS, Rotterdam and CBS demand systems, for estimation. The estimated income elasticities reveal that food, alcohol and tobacco, housing and medical care are necessities. All the own-price elasticities are negative and less than one in absolute value (except for recreation), indicating that demand for most goods is price inelastic. In addition, we tested the demand theory hypotheses, homogeneity, Slutsky symmetry and preference independence and found them to be acceptable.

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Section: Divisia Momentssupporting

confidence: 91%

Section: Divisia Momentssupporting

confidence: 87%

Section: Introductionmentioning

confidence: 99%

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Empirical analysis of Australian consumption patterns

Wong

Selvanathan

2016

Empir Econ

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“…To estimate the rate of inflation there are two main approaches namely functional approach to index numbers of Diewert (1981), Balk (1995) which dates back to Fisher (1922), and the second is stochastic approach to index numbers theory reintroduced by Frisch (1936), Theil (1975), Clements and Izan (1981), Clements and Izan (1987), Selvanathan (1989), Diewert (1995), Crompton (2000), Selvanathan (2003), Selvanathan and Selvanathan (2003), Selvanathan and Selvanathan (2004), Selvanathan and Selvanathan (2006), Clements et. al (2006), Clements and Selvanathan (2007).…”

Section: Introductionmentioning

confidence: 99%

“…After correction, it was seen that 75% values of standard error with Crompton's approach were smaller than that of Clements and Izan(1987) approach. Selvanathan and Selvanathan (2003) also wrote a book on international consumption comparisons. He used the data of OECD and LD (Least Developing) countries and applied the stochastic approach to index numbers.…”

Section: Introductionmentioning

confidence: 99%

Measuring Inflation Through Stochastic Approach to Index Numbers for Pakistan

Asghar

Tahira²

2010

Pak.j.stat.oper.res.

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This study attempts to estimate the rate of inflation in Pakistan by the stochastic approach to index numbers by allowing systematic changes in relative prices. This approach provides not only point estimate but also confidence interval for the rate of inflation. There are two types of approaches to index number theory namely: the functional economic approaches and the stochastic approach. The attraction of stochastic approach is that it estimates the rate of inflation in which uncertainty and statistical ideas play a major roll of screening index numbers We use CPI data covering the period July 2001--March 2008 for Pakistan and find that if prices of individual commodities are widely dispersed then the level of uncertainty for measuring the rate of inflation will be very high. We find that the rate of inflation was changing significantly from month to month and by applying stochastic approach to index numbers we gained some level of confidence that our estimated range will contain the true parameter of the rate of inflation.

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