STRUCTURAL BREAKS IN CONSUMPTION PATTERNS: INDIA, 1952 TO 1991

Brinda Viswanathan
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Brinda Viswanathan: Delhi School of Economics

No 61, Working papers from Centre for Development Economics, Delhi School of Economics

Abstract: The tests for structural breaks in consumption patterns indicate multiple break points which are not uniform across the population groups and also across commodity groups. Further, the results indicate that the breaks could often be induced by the changes in the data collection methodology of the survey and not due to changes in consumer behaviour alone. Apart from this, there is a shift in the consumption pattern during the mid-1980 in both the mral and the urban sectors. For the lowest expenditure class the shift is away from food items with the mral sector showing a change in the price response and the urban sector showing a change in the total expenditure coefficient. For the middle and the upper expenditure classes the shifts are not only from the food items towards non-food items but also from the 'food' group that includes items like cereals, milk and milk products towards the 'other food' group which includes items like vegetables and fruits. Its causes are found to be changes in preferences as well as the income effect.

Keywords: Liberalization; Foreign Direct Investment; Granger Causality (search for similar items in EconPapers)
JEL-codes: C3 F4 O5 (search for similar items in EconPapers)
Pages: 47 pages
Date: 1999-03
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