Abstract
The purpose of this study has been to elucidate the relationship between various factors and household consumption expenditure. The data, collected by households, are from the rural consumption investigation carried out in 1959/60. The data were studied in two separate groups, farming households and wage-earner households. The research unit was a household. The seven different expenditure groups (tables 1 and 2) were studied in detail and the variations in their share of the total expenditure were studied by stepwise regression analysis. The equations developed for studying the monetary consumption expenditure are given in tables 3 and 4. It is notable that the third degree function of the expenditure class rise gave the best explanation for the variations in some expense groups for all these households. Of the variations in the other expenditure group for the wage earners, almost a half were determined by the parabolic function of the increase in expenditure alone. In explaining the variations in the different expenditure groups, the models given in tables 3 and 4 proved somewhat more efficient than the original models (tables 1 and 2). It must be kept in mind, however, that the data on many of the expenditure groups were rather limited in both an absolute and a relative sense. Regularities that would explain the expenditure variations were not provided by the independent variables for all relationships. It should also be kept in mind that the results are based on data from each household for consumption expenditure for a period of one month. The available data also imposed certain restrictions on the variables tested for their relationships with the consumption expenditure.
Highlights
The level and structure of consumption have been found dependent on the income available to the consumer, his preferences, and the prices of the commodities on the market
The seven different expenditure groups were studied in detail and the variations in their share of the total expenditure were studied by stepwise regression analysis
The equations developed for studying the monetary consumption expenditure are given in tables 3 and 4
Summary
The level and structure of consumption have been found dependent on the income available to the consumer, his preferences, and the prices of the commodities on the market (cf. e.g. Wallberg 1965, p. 29). XXXIT24) yielded data which enabled studies on the relationship between expenditure on food and especially the number of children This brought up the question of what were the variables of primary importance in determining the other items of consumption. Since the data used in this study has been collected during a period of twelve months, possible seasonal price fluctuations may affect the consumption expenditure, which is affected by the changes in the amounts of commodities used during different periods. It was not, possible to separate the effects of these components in the data available. Relatively large-scale social groupirg did not appear have significance within the various income or expenditure groups
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