An Analysis of Consumption and Expenditures for Lithuanian Households Using Budget Survey Data

Abstract

<p>Recent household budget survey data for Lithuania provide a profile of expenditure patterns for households by income level and living in either urban or rural areas. This paper provides an overview of expenditures and gives estimates of Engel functions and income elasticities for major expenditure groups and for food commodities. Food commodities are relatively important to households in both urban and rural areas and show relatively inelastic response to income levels. Based in an assumed reduction in income for 1991 of 41 percent, food shares are projected to increase by nearly 36 percent from 1989 levels. This is likely to be a lower bound for the anticipated changes.</p>