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Title: |
How Income Elastic is the Consumers' Demand
for Services in Singapore? |
| Author: |
Mahadevan,
Renuka; Kalirajan, K. P. |
| Author
Affiliation: |
U Queensland;
Foundation for Advanced Studies on
International Development |
| Source: |
International Economic Journal, Spring 2002, v. 16, no. 1, pp. 95-104 |
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Publication Date: |
Spring 2002 |
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Abstract: |
Although economic theory indicates that
services are income elastic, empirical evidence on this issue has not
been conclusive. Using time series data from 1965 to 1996, this paper
attempts to test whether consumer's demand for services is income
elastic in Singapore. Unlike in other studies, the stationarity of the
macro economic variables used in this analysis is tested to obtain more
reliable estimates. The empirical results show that demand for services
is not income elastic in Singapore. |
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