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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