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Citation Information

Type Journal Article - Academic Research International
Title Income and Economies of Scale Effect on Household Food Demand Pattern in Pakistan Using PSLM Data
Author(s)
Volume 3
Issue 1
Publication (Day/Month/Year) 2012
Page numbers 50-56
URL http://www.savap.org.pk/journals/ARInt./Vol.3(1)/2012(3.1-06).pdf
Abstract
The study evaluates the household food demand patters for various income groups in Pakistan
namely: The Lower Income Group(≤ 5000), Lower-middle Income Group(5001-10000),
Middle Income Group(10001-15000), Upper-middle Income Group (15001-20000) and Upper
Income Group (20001+), respectively. The study uses Pakistan Social and Living Standard
Measurement Survey (PSLM) 2007-08, data conducted by the Federal Bureau of Statistics
(FBS), Government of Pakistan, Islamabad. The food expenditures are the sum of expenditures
by each household on the following commodity groups: cereals, pulses, fruits, vegetables,
dairy products, chicken, meat, fish, condiments, sugar, edible oils, drinks and miscellaneous
food products. The household size and income elasticities are estimated to explain the food
consumption trends in Pakistan. The results of the study indicate that all the income and
household size elasticities are positive and significant at one percent level of significance.
Results of the study indicate that food income elasticity is the highest (0.896) for the LowerMiddle
Income Group and the same is the lowest (0.706) for Upper Income Group. Similarly,
household size elasticity is the highest (0.171) for the Upper Income Group and the same is the
lowest (0.057) for Lower Income Group.

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