INCOME ELASTICITIES OF DEMAND FOR MIDDLE AND LOW INCOME LIBYAN EMPLOYEES IN TRIPOLI

Abstract

The present study is based on the data collected in the Family
Budget Survey of Tripoli in 1962 1. The 1962 survey was primarily
conducted to establish suitable weights for the calculation of a Cost of
Living Index for a specific group of Libyan employees in Tripoli.
However, the extensive set of tables provided in the report enables one
to make some econometric studies. In this work an attempt has been
made to estimate income elasticities of demand for food, housing,
clothing, and miscellaneous items of consumer expenditure. The method
adopted for analysis is similar to that given by Wold and Jureen 2.
Field work for the Tripoli survey was completed within three months---
15th. January to 15th. April 1962. It may not, therefore, be very
wrong to assume that the prices for the consumer goods remained
constant throughout the period.