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In this paper panel analysis is being carried on original Relative Income Hypothesis (RIH) and its other modifications over the time span of 1998 to 2015. To furnish reliable and appropriate estimation, Households Integrated Economic Surveys (HIES) based consumption and income variables have been gone through various stages of data filtering. The findings of Feasible Generalized Least Squares (FGLS) significantly validate the relevance of three types of ratchet effects (income, consumption and habit) in provinces. Average Propensity to Consume is highest for Baluchi's households followed respectively by Pashtuns, Punjabi, and Sindhi. The selection of constant slop model implies that province-wise there is no difference in magnitudes of ratchet effect obtained from various versions of RIH. All provinces make adjustments in long run to their consumption in response to income fluctuations. Estimated marginal consumption propensities are according to economic theory that shows smooth consumption path in short run as well in the long run. Polices should be formulated to switch consumer mind set from consumption oriented to saving oriented with the help of appropriate tool of fiscal and monetary policies. [ABSTRACT FROM AUTHOR]

The objective of this study is to analyze household demand system for Pakistan by estimating various elasticities of demand. This study combines nine different rounds of Household Integrated Economic Survey data to estimate Almost Ideal Demand System (AIDS). Household level data are supplemented with rich price information available for all the twelve months of the nine years. This approach yields efficient estimates of income and price elasticities, which are non-linear combinations of the parameters of AIDS. Standard errors for all the elasticity estimates are computed on the basis of Monte-Carlo simulations. The results show that household demand responses to income changes are similar between rural and urban households, while the response to price changes differ considerably. On average, rural households are found to be more responsive to price changes than the urban households. The study recommends that on equity grounds transport and communication and miscellaneous non-food goods and housing can be taxed more heavily as compared to other goods. [ABSTRACT FROM AUTHOR]

A clear and systematic methodology for poverty measurement is lacking for Pakistan which results in differing poverty estimates with divergent patterns and trends. This paper measures poverty in Pakistan by establishing a clear and systematic methodology and demonstrates poverty comparisons. Using the data from Household Integrated Economic Survey 2011-12, over 41.18% population in Pakistan is estimated to be below the poverty line. Poverty is found significantly higher in the rural areas as compared with the urban areas at the national level as well as in all the provinces. Though incidence of poverty appears to be highest in Balochistan, majority of poor are found in Punjab. [ABSTRACT FROM AUTHOR]

The government budget plays an important role in determining economic growth of a country. The accurate determination of budget estimate for revenue and expenditure is the key for successful implementation of budget plan. Any significant variation in determination of either of these budget estimates from the accurate budget estimates can have far reaching economic implications. The revenue receipts are one of the most significant parts of the overall resource envelope of a country. Therefore, there is a need to analyze accuracy of budgetary forecast for revenue receipts. This study conducts an exercise on accuracy of Pakistan's Federal Revenue receipts budgetary forecasts. The study identify that there is a significant difference between the budget estimates of Federal Revenue receipts and actual revenue receipts. This difference also holds for different components of revenue receipts. Further analysis is done for pre and post 1990s reforms. The revenue forecasting has not improved during post reforms period due to a number of reasons. The reforms did not have revenue forecasting as one of the objectives, secondly the estimates rely heavily on the accuracy of macroeconomic forecasts and the buoyancy measures. These are not up to the mark. With this analysis, policy recommendations for increasing the certainty in fiscal instruments are drawn. [ABSTRACT FROM AUTHOR]

Corruption has significantly contributed towards slow economic growth, terrorizes security, damages individual’s trust and public confidence in the systems, and thereby, affect individuals’ daily lives. The aim of the study is to empirically investigate socioeconomic determinants of corruption using panel data set of Developing Eight (D-8) countries and GMM estimation method. The results suggest that economic development, government size, income inequality, urbanization and education have statistically significant impact on corruption. An increase in economic development, government size and education level lowers the corruption, where as, skewed income distribution and urbanization enhance its level. However, inflation, economic competition and female labor force participation are found statistically insignificant. The study findings are based on data set for D-8 countries, which are all Muslim nations. Therefore, study’s results should be taken with caution in formulating the policies. But, still, these results have important implications; economic managers should focus on the policies that promote education, economic development, less skewed income distribution and government size to control the corruption in the country. [ABSTRACT FROM AUTHOR]

There exist huge earning differentials across the districts of Pakistan. The present study is an attempt to analyze the factors that can be attributed to differences in earnings across the districts of Pakistan. The results show that proportion of educated earners, efficient age group earners and dependency ratio had a positive impact on the average earnings, while the proportion of female earners had negative effect on average earnings. Moreover, the impact of socio-development factors; like infrastructure, health units and provincial capital had a favorable effect on the average earnings of individuals. On the other hand, terrorist attacks results in lowering the average earnings. [ABSTRACT FROM AUTHOR]

The study examined 'implicit tax' argument of the agriculturists' lobby to oppose imposition of an agricultural income tax. The paper discovered a widening gap between procurement and export prices of both Basmati and IRRI. The gap between procurement and consumer prices of the two varieties also widened significantly. Thus while both producers and consumers remained on the losing end, first government and then after the policy reforms the exporters and other intermediaries, were the substantial gainers. Since RECP has been disbanded and the Government has opted out of purchase and export of rice, the margin now goes to the exporters instead of the Government. Under the changed rice policy, the 'implicit' tax argument has therefore lost much of weight and relevance. [ABSTRACT FROM AUTHOR]