Estimation of the Iraqi consumer expenditure functions for the family budget survey for 2007 and 2012 according to the method of the lowest weighted squares

Abstract

Numerous mathematical forms of functions that can explain the relationship between expenditure on the commodity group and total expenditure, the most important of which are linear and semi-logarithmic and logarithmic functions and other forms of functions. Therefore, the research aimed at estimating the expenditure functions by commodity groups according to the weighted minimum squares method, and the results indicated that the balanced double logarithmic function is the most appropriate when analyzing the household expenditure data in order to agree with the economic theory. This indicates that the changes in total expenditure explain in all the functions more than 89% of the changes in the expenditure on any commodity groups. The commodities of the food groups, spirits, tobacco, tobacco, housing and its equipment are mostly necessary commodities, while most commodities of other commodity groups Quantitative goods according to the resulting expenditure elasticities in estimated functions.