Does Pan, Tobacco & Intoxicants Consumption Respond with Prices and Expenditure in India?

Abstract

In the present paper an attempt has been made to estimate the responsiveness of prices and household expenditure on consumption of pan, tobacco and intoxicants at household level in rural and urban areas of All India for the various deciles class (economic status) of family by using NSSO 66^th i.e. quinnquenial rounds of Household expenditure unit level data for the year 2009-10. The expenditure on pan, tobacco and intoxicants at household level is inelastic. The marginal propensity to consume at household level for pan, tobacco and intoxicants is low in India. Paper pointed out that rupee increase in the per capita expenditure will increase consumption of pan in rural region while for tobacco and intoxicants in urban region.