Inflation and Rural Household Saving; A Case Study of Fars Province

Inflation and Rural Household Saving; A Case Study of Fars Province

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This paper aims at estimation of own price elasticity, cross price elasticity and elasticity of saving with respect to income and price in the framework of the linear expenditures system (LES).Our findings show that aggregate marginal propensity to expenditure (MPC) is 0.72 beverange, fast food and tobacco products, and housing are 0.

098 and 0.08, respectively.The lowest MPC belongs to flour, cereal and bread blackmores ache relief focus review with 0.

028.Estimated income elasticity of goods and services dedicate that foods (excluding beverage, fast food and tobacco products) are necessity but housing, transportation, communication and entertainment are luxury.The price elasticity of saving reveals that any increase in flour and products, read more meat, milk and products, edible oils, fruits and vegetables, clothing and footwear will result in a decrease in the saving.

The income elasticity of saving is 2.45.