How IncomeElastic Is The Consumers Demand For Services In Singapore?

Although economic theory indicares that services are income elastic, empirical Evidence on this issue has not been conclusive. Using time series dat from 1965 to 1996 this paper ettempts to test whether consumer's demand for services is income elastic in Singapore. Unlike in other studies,the stationary of the macro economic variables used in this analysis is tested to obtain more reliable estimates. The empirical results show that demand for services is not income elastic in Singapore. [C12, C22]