Abstract
This study analyzes the effect of demographic characteristics on household finance in Pakistan. Using Household Integrated Economic Survey data and applying the proportional sampling technique, we determine that household size, secondary and tertiary education, gender, size of income, urban area, occupation, and province-wise residency are the important predictors of household finance. We split our dataset controlling for household size, age, and income. This study identifies a small variation in the determinants of household finance when examining the behavior of small- and large-sized households, young and mature households, and low- and high-income households. We compare our results with previous literature and report that the behavior of households varies in different countries due to different demographic characteristics. Hence, the behavior households vary across countries; however, there is no specific factor that varies as we move from country to country.
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