Quadratic Food Engel Curves with Measurement Error: Evidence from a Budget Survey
AbstractIn this paper we estimate quadratic food Engel curves with measurement error using the 1994 Ethiopian Urban Household Budget Survey. In sharp contrast to the findings from developed countries, food share is found to increase with expenditure, and only starts to decline after some threshold level of expenditure. We establish the robustness of this inverted-U relationship by estimating a more flexible semiparametric model that corrects for the endogeneity of expenditure. The potential policy distortion that may result from neglecting the problem of measurement error in the estimation of Engel curves is also discussed.
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Bibliographic InfoPaper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 03/17.
Date of creation: Dec 2003
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- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-01-08 (All new papers)
- NEP-EDU-2004-01-08 (Education)
- NEP-MIC-2004-01-08 (Microeconomics)
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