Comparative Analysis of Consumption in Income-Diverse Regions

This coursework explores income inequality and household consumption behaviours through theoretical and empirical approaches, applying Keynesian Absolute Income Hypothesis. Using survey comparisons, descriptive statistics, and double-log regression models, it examines consumption elasticity across regions Dudhia and Batasi. The findings reveal differing marginal propensities to consume (MPC), with Batasi showing higher MPC indicating benefits of economic equality, while Dudhia reflects issues...