Income-consumption relationship under relative income hypothesis: empirical evidence from Peshawar, Pakistan Online publication date: Thu, 10-Dec-2015
by Himayatullah Khan; Humayun Khan; Imran Sharif Chaudhary; Alena Fedorova
International Journal of Economic Policy in Emerging Economies (IJEPEE), Vol. 8, No. 4, 2015
Abstract: The main objective of this research was to empirically investigate the relationship between income and consumption of farm households in District Peshawar, Pakistan. For this purpose, a household level survey was conducted in summer 2012 in two selected villages, namely Tarnab and Akbarpura. Out of the total 3,244 households, a sample of 300 households was randomly selected. The study found that household current level of income, family size, education of household head, and social status were the significant determinants contributing positively to household consumption. Only age of household head was negatively related to household consumption. The results of the study confirms that farm households follow Dusenberry's relative income hypothesis and that household consumption is not only affected by household current level of income but by the highest level of income previously attained as well as the consumption patterns of other households.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economic Policy in Emerging Economies (IJEPEE):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook