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...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2021
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| Online Access: | http://journalarticle.ukm.my/18787/ http://journalarticle.ukm.my/18787/1/jeko_552-4-2.pdf |
| _version_ | 1848814666604609536 |
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| author | Ahmad Fahme Mohd Ali, Naziatul Aziah Mohd Radzi, Ruzanifah Kosnin, Suchi Hassan, Siti Salina Saidin, |
| author_facet | Ahmad Fahme Mohd Ali, Naziatul Aziah Mohd Radzi, Ruzanifah Kosnin, Suchi Hassan, Siti Salina Saidin, |
| author_sort | Ahmad Fahme Mohd Ali, |
| building | UKM Institutional Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-15T00:37:43Z |
| format | Article |
| id | oai:generic.eprints.org:18787 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:37:43Z |
| publishDate | 2021 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org: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/ |
| 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 |
| title | 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_short | Estimating expenditure pattern and permanent income hypothesis : evidence from Kelantan Malaysia |
| title_sort | estimating expenditure pattern and permanent income hypothesis : evidence from kelantan malaysia |
| url | http://journalarticle.ukm.my/18787/ http://journalarticle.ukm.my/18787/ http://journalarticle.ukm.my/18787/1/jeko_552-4-2.pdf |