Empirical Regularities in Consumption Patterns

  • K. W. Clements
  • S. Selvanathan


The objective of this chapter is to review, distill and systematise some of the major empirical findings on consumption patterns, concentrating in particular on the more recent (and, in some cases, more controversial) evidence. We start by using price-quantity data for the OECD to introduce indexes of consumption patterns. Then follows a discussion of Engel’s law (and its modern extension) and recent evidence on homogeneity and symmetry. Later parts of the chapter deal with preference independence, the issue of the constancy of tastes and aspects of functional form of demand equations. Most of the discussion deals with results from time-series/cross-country data. This chapter draws on Clements and S. Selvanathan (1994).


Price Elasticity Income Elasticity Demand System Demand Equation European Economic Review 
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Copyright information

© Springer-Verlag Berlin · Heidelberg 1995

Authors and Affiliations

  • K. W. Clements
    • 1
  • S. Selvanathan
    • 2
  1. 1.Economic Research CentreThe University of Western AustraliaAustralia
  2. 2.Faculty of Commerce and AdministrationGriffith UniversityAustralia

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