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Does Income Really Matter? Nonparametric and Parametric Estimates of the Demand for Calories in Tanzania

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  • Abdulai, Awudu
  • Aubert, Dominique

Abstract

This study employs both nonparametric and parametric methods to examine the influence of household expenditure and other demographic variables on household consumption of calories in Tanzania, using recent survey data. Under each estimation strategy we employ, we find significant and positive relationship between household expenditure and calorie consumption. Even with an estimation strategy that ensures consistent estimates in the presence of measurement error, the calorie-expenditure elasticity is 0.46, a finding that is consistent with the traditional view that, increases in household income will improve calorie intake and help alleviate inadequate nutrition.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 2002 International Congress, August 28-31, 2002, Zaragoza, Spain with number 24863.

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Date of creation: 2002
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Handle: RePEc:ags:eaae02:24863

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Keywords: Food Security and Poverty;

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  1. Subramanian, S. & Deaton, A., 1994. "The Demand for Food and Calories," Papers 175, Princeton, Woodrow Wilson School - Development Studies.
  2. 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.
  3. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
  4. Sahn, David E, 1988. "The Effect of Price and Income Changes on Food-Energy Intake in Sri Lanka," Economic Development and Cultural Change, University of Chicago Press, vol. 36(2), pages 315-40, January.
  5. 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.
  6. Sahn, David E. & Alderman, Harold, 1988. "The effects of human capital on wages, and the determinants of labor supply in a developing country," Journal of Development Economics, Elsevier, vol. 29(2), pages 157-183, September.
  7. Sahn, David E, 1994. "The Contribution of Income to Improved Nutrition in Cote d'Ivoire," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 3(1), pages 29-61, April.
  8. Strauss, John, 1984. "Joint determination of food consumption and production in rural Sierra Leone : Estimates of a household-firm model," Journal of Development Economics, Elsevier, vol. 14(1), pages 77-103.
  9. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July.
  10. Bouis, Howarth E., 1994. "The effect of income on demand for food in poor countries: Are our food consumption databases giving us reliable estimates?," Journal of Development Economics, Elsevier, vol. 44(1), pages 199-226, June.
  11. Strauss, John, 1986. "Does Better Nutrition Raise Farm Productivity?," Journal of Political Economy, University of Chicago Press, vol. 94(2), pages 297-320, April.
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