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Household Size Economies: Malaysian Evidence

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Author Info

  • Thaiyoong Penny Mok

    ()
    (The Treasury, Wellington 6140, New Zealand)

  • Gillis Maclean

    ()
    (Lincoln University, PO Box 84, Lincoln 7647 New Zealand)

  • Paul Dalziel

    ()
    (AERU Research Unit, Lincoln University, PO Box 84, Lincoln 7647 New Zealand)

Abstract

People live in households with different size and composition and they consume a variety of goods; categorised as private and public goods. With the existence of public goods in the household, doubling the household size need not increase the consumption expenditure twofold to maintain the same standard of living. Using households’ per capita expenditure from the Household Expenditure Survey 2004-2005, we estimate the household size economies indices for household consumption goods through the Seemingly Unrelated Regression. The results suggested that the lower income households enjoy savings from a wider range of public goods compared to the higher income households.

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Bibliographic Info

Article provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).

Volume (Year): 41 (2011)
Issue (Month): 2 (September)
Pages: 203-223

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Handle: RePEc:eap:articl:v:41:y:2011:i:2:p:203-223

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Keywords: Household size economies; Seemingly Unrelated Regression; household composition; public goods; Malaysia.;

References

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  1. Victoria Vernon, 2010. "Marriage: for love, for money…and for time?," Review of Economics of the Household, Springer, vol. 8(4), pages 433-457, December.
  2. Alejandrina Salcedo & Todd Schoellman & Michèle Tertilt, 2010. "Families as Roommates: Changes in U.S. Household Size from 1850 to 2000," Working Papers 2010-07, Banco de México.
  3. Lanjouw, Peter & Ravallion, Martin & DEC, 1994. "Poverty and household size," Policy Research Working Paper Series 1332, The World Bank.
  4. Deaton, A. & Paxson, C., 1997. "Economies of Scale, Household Size, and the Demand for Food," Papers 178, Princeton, Woodrow Wilson School - Development Studies.
  5. Pradhan, Menno, et al, 2001. "Eating Like Which "Joneses?" An Iterative Solution to the Choice of a Poverty Line "Reference Group."," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 47(4), pages 473-87, December.
  6. Lazear, Edward P & Michael, Robert T, 1980. "Family Size and the Distribution of Real Per Capita Income," American Economic Review, American Economic Association, vol. 70(1), pages 91-107, March.
  7. John Gibson, 2002. "Why Does the Engel Method Work? Food Demand, Economies of Size and Household Survey Methods," Working Papers in Economics 02/02, University of Waikato, Department of Economics.
  8. Rachel Griffith & Ephraim Leibtag & Andrew Leicester & Aviv Nevo, 2009. "Consumer Shopping Behavior: How Much Do Consumers Save?," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 99-120, Spring.
  9. Christian Broda & Ephraim Leibtag & David E. Weinstein, 2009. "The Role of Prices in Measuring the Poor's Living Standards," Journal of Economic Perspectives, American Economic Association, vol. 23(2), pages 77-97, Spring.
  10. Nelson, Julie A, 1988. "Household Economies of Scale in Consumption: Theory and Evidence," Econometrica, Econometric Society, vol. 56(6), pages 1301-14, November.
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