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Intrahousehold Resource Allocation in Rural Pakistan: A Semi-parametric Analysis

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  • Cliff Attfield
  • Sonia R Bhalotra

Abstract

We estimate semiparametric Engel curves for rural Pakistan using a large household survey. This allows us to obtain consistent estimates of the effects of household size and composition on consumption patterns even when these demographic variables are correlated with an unknown function of income. The coefficients on the household composition variables are used to infer patterns of intrahousehold allocation. While there is little evidence of gender bias amongst children, adult males appear to get more than adult females. There is a tendency amongst males for workers to get more than dependents. There is no evidence of differential treatment of the elderly and higher birth-order children. We identify substantial economies of size in food consumption. We also find that Engel curces for food, adult goods and child goods are nonlinear, which suggests that the PIGLOG class of demand models in inappropriate.

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Bibliographic Info

Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers with number 11.

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Date of creation: Feb 1998
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Handle: RePEc:cep:stidep:11

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Web page: http://sticerd.lse.ac.uk/_new/publications/default.asp

Related research

Keywords: Semiparametric estimation; intrahousehold resource allocation; gender bias; Engel curves.;

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  1. Deaton, Angus S, 1989. "Looking for Boy-Girl Discrimination in Household Expenditure Data," World Bank Economic Review, World Bank Group, vol. 3(1), pages 1-15, January.
  2. Subramanian, S. & Deaton, A., 1994. "The Demand for Food and Calories," Papers 175, Princeton, Woodrow Wilson School - Development Studies.
  3. Ahmad, A. & Morduch, J., 1993. "Identifying Sex Bias in the Allocation of Household Resources: Evidence from Linked Household Surveys from Bangladesh," Harvard Institute of Economic Research Working Papers 1636, Harvard - Institute of Economic Research.
  4. Aït-Sahalia, Yacine. & Bickel, Peter J. & Stoker, Thomas M., 1994. "Goodness-of-fit tests for regression using kernel methods," Working papers 3747-94., Massachusetts Institute of Technology (MIT), Sloan School of Management.
  5. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  6. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  7. Martin Browning & Ramesh Subramaniam, 1994. "Gender Bias in India: Parental Preferences or Marriage Costs?," CRIEFF Discussion Papers 9415, Centre for Research into Industry, Enterprise, Finance and the Firm.
  8. Kynch, Jocelyn & Sen, Amartya, 1983. "Indian Women: Well-Being and Survival," Cambridge Journal of Economics, Oxford University Press, vol. 7(3-4), pages 363-80, September.
  9. Behrman, Jere R., 1988. "Nutrition, health, birth order and seasonality : Intrahousehold allocation among children in rural India," Journal of Development Economics, Elsevier, vol. 28(1), pages 43-62, February.
  10. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  11. Delgado, Miguel A & Miles, Daniel, 1997. "Household Characteristics and Consumption Behaviour: A Nonparametric Approach," Empirical Economics, Springer, vol. 22(3), pages 409-29.
  12. Deaton, Angus S & Ruiz-Castillo, Javier & Thomas, Duncan, 1989. "The Influence of Household Composition on Household Expenditure Patterns: Theory and Spanish Evidence," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 179-200, February.
  13. Strauss, J. & Thonas, D., 1990. "The Shape Of The Calorie-Expenditure Curve," Papers 595, Yale - Economic Growth Center.
  14. Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 720-44, August.
  15. Muellbauer, John, 1975. "Aggregation, Income Distribution and Consumer Demand," Review of Economic Studies, Wiley Blackwell, vol. 42(4), pages 525-43, October.
  16. Rosenzweig, Mark R & Schultz, T Paul, 1982. "Market Opportunities, Genetic Endowments, and Intrafamily Resource Distribution: Child Survival in Rural India," American Economic Review, American Economic Association, vol. 72(4), pages 803-15, September.
  17. Morduch, Jonathan J. & Stern, Hal S., 1997. "Using mixture models to detect sex bias in health outcomes in Bangladesh," Journal of Econometrics, Elsevier, vol. 77(1), pages 259-276, March.
  18. Lewbel, Arthur, 1991. "The Rank of Demand Systems: Theory and Nonparametric Estimation," Econometrica, Econometric Society, vol. 59(3), pages 711-30, May.
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