Abstract

The main objective of the study is to identify the household consumption pattern in Pakistan. To fulfill the objective, the research incorporates microdata of household expenditure on twenty food and nonfood groups for the period 2018- 19. Different socioeconomic and demographic variables are also used to explain household consumption behaviour. It is concluded that most of the expenditure share of food and non-food groups of commodities has increased due to an increase in per capita income, but at a decreasing rate. Household size, household age and employment by age and by gender have played a significant role in altering the consumption share of most of food and nonfood commodities. There are both provincial and regional disparities exist in consumption behavior. Housing is considered a normal or luxurious good, while education is inferior because the expenditure share of housing has increased as income has increased, and so on. It is suggested that the government should work to increase the awareness regarding the importance of education.

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