مجلة بحوث الإدارة والاقتصاد
Volume 5, Numéro 2, Pages 221-247
2023-06-11
Econometric Modeling Of Household Consumption In Algeria Using Engel Functions
Authors : Bourdache Chahrazed .
Abstract
This study aimed to test the consumption spending behavior of Algerian families toward commodity totals, using Engel's linear and double logarithmic models and relying on the least squares estimation method based on the results of the two household surveys,1988 and 2011. We concluded through the study that the behavior of Algerian families towards commodity groups has changed. The purchasing power improved during the period (1988-2011). Hence, food commodities were luxury goods in 1988, while clothes and shoes, health and physical hygiene, as well as various materials and other expenses, are luxury goods. The rest of the other commodities were essential in 2011.
Keywords
Total consumption expenditures ; Engel's functions ; Aggregated data ; Marginal propensity to consume ; Income elasticity
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