Departmental Bulletin Paper Consumption Patterns Analysis in Thailand with Linear Approximate Almost Ideal Demand System, 1980-2014

Patthamaporn, Piriyakitpaiboon

14pp.107 - 121 , 2017-4 , 埼玉大学経済学会
The study focuses, in particular, on the allocation of the private consumption expenditures among the aggregate food and non-food commodities during the observation period of 1980-2014 using a collective data of National Income of Thailand published by the Office of the National Economic and Social Development Board(NESDB). The study attempts to signify and characterize the consumption allocations among different aggregate commodities of the Thai consumers as per capita real disposable income increased when the country progressed from a low-income to a middle-income economy, and their responses as the crisis took place in the economy. The Linear Approximate Almost Ideal Demand System(LA/AIDS), an extension of the demand system which was developed by Deaton and Muellbauer(1980), is applied with the data for the purpose of the demand system an analysis. The results suggest that changes in income provide significant impacts on the consumption decisions among Thai consumers whereas the external shocks such as crisis indicate no significant impacts on changes in consumption behavior. In addition, the empirical results indicate significant improvements in both food and non-food consumption baskets as per capita income increases over the time period for the Thai consumers, particularly food consumption. Well-being enhancement related commodities such as housing utilities, transport, and communication were proven to remain as luxuries while access to consumption in regards to human capital development such as health care and education remained limited among average consumers, especially the lower income consumers.

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