International comparisons of expenditure patterns

Constantino Lluch, Alan Powell

Research output: Contribution to journalArticleResearchpeer-review

32 Citations (Scopus)

Abstract

The linear expenditure system (LES) of Stone (1954) is fitted to an eight-commodity classification of personal consumption expenditures in the national accounts data of 19 countries widely dispersed in the development spectrum. Cross-country comparison of the results reveals some discernible patterns in the variations of price and expenditure elasticities as a function of GNP per head. In particular, Food's own-price and expenditure elasticities are estimated to decline in absolute value as real GNP per head increases. Overall, own-price elasticities and cross-price elasticities with respect to food appear to account for about 80% of total price responsiveness in the fitted system.

Original languageEnglish
Pages (from-to)275-303
Number of pages29
JournalEuropean Economic Review
Volume6
Issue number3
DOIs
Publication statusPublished - 1 Jan 1975

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