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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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  • John Gibson

    ()
    (University of Waikato)

  • Bonggeun Kim

    (Seoul National University)

Abstract

Measurement error in short-run expenditures from household surveys may attenuate estimated effects of permanent income on economic outcomes. Repeated observations on households during the year are used to calculate reliability ratios and estimate errors in variables regressions of the impact of income on calorie intakes. In contrast to influential studies finding no effect of income, the results suggest significant nutritional responses to income in poor countries.

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File URL: ftp://mngt.waikato.ac.nz/RePEc/wai/econwp/1103.pdf
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Bibliographic Info

Paper provided by University of Waikato, Department of Economics in its series Working Papers in Economics with number 11/03.

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Length: 9 pages
Date of creation: 18 Mar 2011
Date of revision:
Handle: RePEc:wai:econwp:11/03

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Keywords: income; measurement error; nutrition;

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  1. 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.
  2. McKenzie, David, 2011. "Beyond baseline and follow-up : the case for more t in experiments," Policy Research Working Paper Series 5639, The World Bank.
  3. Beegle, Kathleen & De Weerdt, Joachim & Friedman, Jed & Gibson, John, 2012. "Methods of household consumption measurement through surveys: Experimental results from Tanzania," Journal of Development Economics, Elsevier, vol. 98(1), pages 3-18.
  4. 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).
  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. 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.
  7. Subramanian, S. & Deaton, A., 1994. "The Demand for Food and Calories," Papers 175, Princeton, Woodrow Wilson School - Development Studies.
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