Consumption Distribution, Poverty and Inequality
Expenditure inequality increased over the 9 years period. There is an extreme case on the inequality of the expenditure of health and education. It reveals that the poor have no access to health and education. Dr. Kamal Raj Dhungel Production and consumption are two basic fundamentals of economics. Firms produce goods and services with a view to satisfy human wants. In turn, households consume those goods and services creating demand for the product. However, not all goods and services have the same level of demand and are not easily consumed in the market. The major determinant of consumption is income with a positive relationship. That is to say, higher income generates higher consumption and in turn economy produces more goods and services to meet the higher demand. A recent study of relationship between income and consumption shows that the marginal propensity to consume in Nepal is high near to 0.9 indicating a lower level of marginal propensity to save. This implies that with ...