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How reliable are household expenditures as a proxy for permanent income? Implications for the income–nutrition relationship

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  • Gibson, John
  • Kim, Bonggeun

Abstract

Using short-run expenditures from household surveys as a proxy may create attenuated estimates of the impact of permanent income on economic outcomes. We use repeated observations to calculate reliability ratios and estimate errors in variables regressions of the impact of income on nutrition. We find significant responses to income, in contrast to previous influential studies.

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File URL: http://www.sciencedirect.com/science/article/pii/S016517651200523X
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 118 (2013)
Issue (Month): 1 ()
Pages: 23-25

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Handle: RePEc:eee:ecolet:v:118:y:2013:i:1:p:23-25

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Income; Measurement error; Nutrition;

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  1. Beegle, Kathleen & De Weerdt, Joachim & Friedman, Jed & Gibson, John, 2010. "Methods of household consumption measurement through surveys : experimental results from Tanzania," Policy Research Working Paper Series 5501, The World Bank.
  2. Behrman, Jere R. & Wolfe, Barbara L., 1984. "More evidence on nutrition demand : Income seems overrated and women's schooling underemphasized," Journal of Development Economics, Elsevier, vol. 14(1), pages 105-128.
  3. Halliday, Timothy J., 2008. "Mismeasured Household Size and Its Implications for the Identification of Economies of Scale," IZA Discussion Papers 3896, Institute for the Study of Labor (IZA).
  4. McKenzie, David, 2011. "Beyond baseline and follow-up : the case for more t in experiments," Policy Research Working Paper Series 5639, The World Bank.
  5. Subramanian, Shankar & Deaton, Angus, 1996. "The Demand for Food and Calories," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 133-62, February.
  6. Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June.
  7. Bouis, Howarth E. & Haddad, Lawrence J., 1992. "Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range," Journal of Development Economics, Elsevier, vol. 39(2), pages 333-364, October.
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