Family expenditure patterns in Canada: A statistical analysis of structural homogeneity

Data from the 1972 Urban Family Expenditure Survey were employed to estimate consumption functions and Engel relationships. The Engel curve is used to show how expenditure on, or consumptin of, a particular commodity varies with the level of family income. In the first case, total current consumption was related to current income and family size. For the Engel curves, family expenditures on 14 commodity groups were related to current income (or total current consumption) and family size. Major objectives of the study were to provide estimates of consumption functions and Engel relationshps based on the most recent survey data, and to examine hypotheses of possible structural changes related to six socio-economic characteristics of the surveyed families. Specifically, the consumption and Engel relationships were examined statistically for possible structural changes across sample partitions. The results indicate that consumpiton functions and Engel curves are sensitive to the socio-economic characteristics of the family. Therefore this observation should be kept in mind when using these results for policy decisions