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Estimation of Systems of Regression Equations with Unbalanced Panel Data and Random Effects: Modelling Food-Expenditure Shares in Vietnamese Households

In: Applied Econometric Analysis Using Cross Section and Panel Data

Author

Listed:
  • Minh Cong Nguyen

    (World Bank)

  • Hoa Bao Nguyen

    (World Bank)

Abstract

The paper develops an econometrics framework and describes its associated Stata command, xtsur, for the estimation of a system of seemingly unrelated regression equations with unbalanced panel data and random effects. The paper applies xtsur to estimate Vietnam’s household demand system, expenditure and own-price elasticities for seven different food categories. The application analyzes Vietnam’s food consumption behavior using an unbalanced panel of Vietnam’s Household Living Standards Surveys (VHLSS) conducted in 2002, 2004, and 2006. Our results suggest that income elasticities are positive and own-price elasticities are negative as expected. Household characteristics such as household head’s age, marital status, education, household size, household location (urban/rural), ethnicity and poverty status appear to affect food group consumption significantly. Households with a larger size or poverty status tend to consume more necessities such as rice, cereal and other starches while consuming less of meat, fruits, and dairy products. These results highlight empirical evidence for policy-makers to make useful food policy recommendations in Vietnam.

Suggested Citation

  • Minh Cong Nguyen & Hoa Bao Nguyen, 2023. "Estimation of Systems of Regression Equations with Unbalanced Panel Data and Random Effects: Modelling Food-Expenditure Shares in Vietnamese Households," Contributions to Economics, in: Deep Mukherjee (ed.), Applied Econometric Analysis Using Cross Section and Panel Data, chapter 0, pages 609-625, Springer.
    • Handle: RePEc:spr:conchp:978-981-99-4902-1_20
    DOI: 10.1007/978-981-99-4902-1_20
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