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- Title
Latvijas ekonomiskās situācijas ietekme uz izmaiņām iedzīvotāju patēriņa izdevumos.
- Authors
Reizina, Veronika
- Abstract
Based on the results of a comparative statistical analysis author found that the highest average growth rate in the structure of consumer spending in Latvia is in categories of furnishings, household equipment and routine household maintenance, transport, recreation and culture. Comparison of Maslow pyramid with the analyzed categories, leads to the conclusion that these categories can be considered as the following after the categories of basic necessities, which strengthens the above statement about ability to spend more on goods out of necessities list. Worth to mention that changes in the structure of consumer spending in Latvia follow the laws of Engel and Schwabe. Analysis of long-term elasticities, based on a model of Almost Ideal Demand System shows that the income elasticities of demand for clothing and footwear, transport, communication and miscellaneous goods and services is higher than 1 and income elasticies for food and non-alcoholic beverages, alcoholic beveragesand tobacco, housing, water, electricity, gas and other fuels, education, furnishings, household equipment and routine household maintenance, health, recreation and culture, restaurants and hotels is inelastic. In turn price elasticity of demand is observed to be higher than 1 in the categories of alcoholic beverages and tobacco, housing, water, electricity, gas and other fuels, furnishings, household equipment and routine household maintenance, recreation and culture, education, restaurants and hotels; inelastic by price demand is observed - food and non-alcoholic beverages, clothing and footwear, health, transport, communication, miscellaneous goods and services.
- Subjects
LATVIA; CONSUMPTION (Economics); COST of living; BASIC needs; ENGEL'S law; ELASTICITY (Economics)
- Publication
Economics & Business, 2010, Vol 20, p100
- ISSN
2256-0386
- Publication type
Article