ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Consumer Behaviour in India-An Application of the Linear Expenditure System

In two articles in The Economic Weekly' Ashok Rudra (November 7, 1964) and Ashok Rudra and Pushpam Paul (November 28, 1964) applied the simplest form of linear expenditure system to some time-series data on domestic consumption in India. Income elasticities obtained thus were very different from the usually accepted cross-section elasticities from the National Sample Survey (NSS); and the elasticities of necessaries (like foodgrains) and of luxuries were much closer to unity.

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