| dc.description.abstract | The Integrated Rural Survey, 1974-1975 and the
Urban Food Purchasing Survey, 1977 are analysed separately
to test the hypotheses: first, that urban marginal propensity
to consume is lower than the rural marginal propensity
to consume, and second that the urban marginal budget share
for non-food is higher than the urban marginal budget share
for food, and that the rural marginal budget share for
food is higher than the rural marginal budget share for non-food
Ideally, especially given a proper data base) the theory
that the marginal propensity to consume and the marginal
budget share for food are higher for the rural sector than
they are for the urban one.
The marginal propensity to consume and the marginal
budget share calculated and analysed separately for both
urban and rural data in this study, do not argue strongly
for the hypothesis, but one fact is strongly supported, that
the higher the income, the lower the marginal propensity
to consume in total and for food for both sectors. The
marginal budget share also declines with rise in income
for both sectors. The major deciding factor in the consumption
of the households in both sectors is income, | en |
