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Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia

The purpose of this paper is to investigate the consumption function among households in Kelantan Malaysia based on the Permanent Income Hypothesis (PIH). This study used secondary data obtained from annual reports, as well as from published and non-published data between 2000 and 2016. The ARDL bou...

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Main Authors: Ahmad Fahme Mohd Ali,, Naziatul Aziah Mohd Radzi,, Ruzanifah Kosnin,, Suchi Hassan,, Siti Salina Saidin,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2021
Online Access:http://journalarticle.ukm.my/18787/1/jeko_552-4-2.pdf
http://journalarticle.ukm.my/18787/
https://www.ukm.my/jem/issue/v55i2/
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spelling my-ukm.journal.187872022-06-23T08:15:45Z http://journalarticle.ukm.my/18787/ Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia Ahmad Fahme Mohd Ali, Naziatul Aziah Mohd Radzi, Ruzanifah Kosnin, Suchi Hassan, Siti Salina Saidin, The purpose of this paper is to investigate the consumption function among households in Kelantan Malaysia based on the Permanent Income Hypothesis (PIH). This study used secondary data obtained from annual reports, as well as from published and non-published data between 2000 and 2016. The ARDL bound testing approach to deal with cointegration was applied to estimate the long run correlation between the variables. Meanwhile, the error correction method (ECM) was used to determine any short run correlation. This study found a large disparity between the elasticity to consume from current income and the elasticity to consume from permanent income among households in Kelantan. Therefore, it can be concluded that in the case of Kelantan, the PIH is valid. Penerbit Universiti Kebangsaan Malaysia 2021 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/18787/1/jeko_552-4-2.pdf Ahmad Fahme Mohd Ali, and Naziatul Aziah Mohd Radzi, and Ruzanifah Kosnin, and Suchi Hassan, and Siti Salina Saidin, (2021) Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia. Jurnal Ekonomi Malaysia, 55 (2). pp. 39-49. ISSN 0127-1962 https://www.ukm.my/jem/issue/v55i2/
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The purpose of this paper is to investigate the consumption function among households in Kelantan Malaysia based on the Permanent Income Hypothesis (PIH). This study used secondary data obtained from annual reports, as well as from published and non-published data between 2000 and 2016. The ARDL bound testing approach to deal with cointegration was applied to estimate the long run correlation between the variables. Meanwhile, the error correction method (ECM) was used to determine any short run correlation. This study found a large disparity between the elasticity to consume from current income and the elasticity to consume from permanent income among households in Kelantan. Therefore, it can be concluded that in the case of Kelantan, the PIH is valid.
format Article
author Ahmad Fahme Mohd Ali,
Naziatul Aziah Mohd Radzi,
Ruzanifah Kosnin,
Suchi Hassan,
Siti Salina Saidin,
spellingShingle Ahmad Fahme Mohd Ali,
Naziatul Aziah Mohd Radzi,
Ruzanifah Kosnin,
Suchi Hassan,
Siti Salina Saidin,
Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia
author_facet Ahmad Fahme Mohd Ali,
Naziatul Aziah Mohd Radzi,
Ruzanifah Kosnin,
Suchi Hassan,
Siti Salina Saidin,
author_sort Ahmad Fahme Mohd Ali,
title Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia
title_short Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia
title_full Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia
title_fullStr Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia
title_full_unstemmed Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia
title_sort estimating expenditure pattern and permanent income hypothesis : evidence from kelantan malaysia
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2021
url http://journalarticle.ukm.my/18787/1/jeko_552-4-2.pdf
http://journalarticle.ukm.my/18787/
https://www.ukm.my/jem/issue/v55i2/
_version_ 1736834965710045184
score 13.211869

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