Ahmad Fahme Mohd Ali, and Naziatul Aziah Mohd Radzi, and Ruzanifah Kosnin, and Suchi Hassan, and Siti Salina Saidin, (2021) Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia. Jurnal Ekonomi Malaysia, 55 (2). pp. 39-49. ISSN 0127-1962
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Official URL: https://www.ukm.my/jem/issue/v55i2/
Abstract
The purpose of this paper is to investigate the consumption function among households in Kelantan Malaysia based on the Permanent Income Hypothesis (PIH). This study used secondary data obtained from annual reports, as well as from published and non-published data between 2000 and 2016. The ARDL bound testing approach to deal with cointegration was applied to estimate the long run correlation between the variables. Meanwhile, the error correction method (ECM) was used to determine any short run correlation. This study found a large disparity between the elasticity to consume from current income and the elasticity to consume from permanent income among households in Kelantan. Therefore, it can be concluded that in the case of Kelantan, the PIH is valid.
| Item Type: | Article |
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| Keywords: | Permanent income hypothesis; Income and expenditure elasticity; Poverty; Kelantan; Malaysia |
| Journal: | Jurnal Ekonomi Malaysia |
| ID Code: | 18787 |
| Deposited By: | ms aida - |
| Deposited On: | 20 Jun 2022 01:19 |
| Last Modified: | 23 Jun 2022 08:15 |
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