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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Theoretical Approach of Consumption, Expense, Family Income through Engle Equations (Evidence from Jordan Family Households – (1989- 2006)

Mohammad Alaya

Open access

This research aims to give a theoretical approach through three models of Engle equation, and
check which model of them can satisfy the theoretical approach of Jordan households’ consumptions
and compatible with family budget.
Also this research investigates an applications of these models through urban and rural in Jordan
families consumptions considered 10 groups of commodity , then estimate specific effects and general
effects of return scale has been done . The expenses elasticity has classified according the three models.
Our finding as a results in all three models as it available in category of 17 yrs old that in urban
elasticity is higher than rural when we applied the models, this result too important due to the ratio of
the youth ratio in Jordan which represent 73% of population, other results presents in research .

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