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Household Consumption Behavior in Pakistan under the Shadow of Personal Insecurity

Hina, Hafsa (2017): Household Consumption Behavior in Pakistan under the Shadow of Personal Insecurity.

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Abstract

Terrorism in Pakistan has become a main and highly critical phenomenon in recent years. It is affecting the economy significantly. This study aims to determine the effect of personal sense of insecurity on household consumption pattern of Pakistan. Pakistan Panel Household Survey (PPHS) 2010, conducted by Pakistan Institute of Development Economics and World Bank are used for the analysis. The empirical results suggest that personal sense of insecurity alters the households’ consumption expenditure significantly. Households adjust their consumption expenditure when they sense insecurity by increasing the expenditure on food items and cut their expenditure on non-food durable and non-food non-durable commodities.

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