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Intra-Household Allocations In Rural Ethiopia: A Demand Systems Approach

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  • Bereket Kebede

Abstract

This article examines the effects of price, income and demographic changes on intra-household allocations by integrating the outlay equivalent method into the Quadratic Almost Ideal Demand System (QUAIDS). Tests for separability in preferences and "demographic separability" are conducted. Longitudinal data to control for household heterogeneity are used. Results indicate that Ethiopian rural households respond to price, income and demographic changes in a more complicated manner than usually presumed; price, income and demographic changes do not have similar effects on all household members. Income changes affect men and boys more than women and girls, but variations in prices affect women and boys more than men and girls. Even though outlay equivalent ratios on average indicate discrimination against girls, girls are more protected from fluctuations in income and prices compared to boys. The results highlight limitations of previous studies that ignore direct income and price effects. Copyright 2008 The Author.

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Bibliographic Info

Article provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.

Volume (Year): 54 (2008)
Issue (Month): 1 (03)
Pages: 1-26

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Handle: RePEc:bla:revinw:v:54:y:2008:i:1:p:1-26

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Cited by:
  1. Koohi-Kamali, Feridoon, 2008. "Intrahousehold inequality and child gender bias in Ethiopia," Policy Research Working Paper Series 4755, The World Bank.
  2. Holden, Stein & Bezu, Sosina, 2014. "Are Wives less Selfish than their Husbands? Evidence from Hawk-Dove Game Field Experiments," CLTS Working Papers 3/14, Centre for Land Tenure Studies, Norwegian University of Life Sciences.

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