• Amanpreet Kaur
• Dr. Anil Kumar Verma

The Government of India introduced economic reforms in various sectors of the economy in July, 1991. The consumption expenditure was expected to change after the reform. Dietary diversification increases with increasing family income. In worldwide terms, Indian Punjab produces 2% of the world’s cotton, 2% of its wheat and 1% of its rice. With industrialization, modernisation, human behaviour have gone a tremendous change. It has influenced the consumption and spending patter of both rural and urban consumers are changed. The study about the consumption expenditure was conducted on the basis of the data collected from two districts i.e. Faridkot and Ludhiana. 200 consumers from urban area and 200 consumers from rural area were selected randomly so as to make a comparative analysis of structure and pattern of consumption expenditure on food items. To achieve the basis objective of the study, three forms of regression analysis were employed by taking the income as independent variable and the consumption expenditure as dependent variable. For each form, Engel’s elasticities were calculated. The regression forms included linear, double-log and semi-log. The study showed that there was a non-linear relationship between expenditure on majority of consumption items and income among rural consumers. The dynamics of food expenditure is that the low income group incurred a higher proportion of their income on food consumption as compared to that among high income group.

Food items, non-food items, consumption items, low income group, high income group, household expenditure, rural consumer, urban consumer

"RELATIONSHIP BETWEEN INCOME AND HOUSEHOLD EXPENDITURE IN PUNJAB: AN ENGEL’S ELASCITY APPROACH", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 5, page no.82-92, MAY-2018, Available :http://www.jetir.org/papers/JETIR1805769.pdf

"RELATIONSHIP BETWEEN INCOME AND HOUSEHOLD EXPENDITURE IN PUNJAB: AN ENGEL’S ELASCITY APPROACH", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 5, page no. pp82-92, MAY-2018, Available at : http://www.jetir.org/papers/JETIR1805769.pdf