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Zero Expenditures and Engel Curve Estimation

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  • Beatty, Timothy K.M.

Abstract

Zeroes expenditure represent a difficulty in the analysis of household survey data. Zero expenditures are the result of two phenomena: nonconsumption and infrequency of purchase. Distinguishing between these types of zeroes is difficult in the kinds of data of interest to agricultural economists. This paper proposes a novel approach that yields less biased estimates of latent expenditure when the cause of the zeroes is unknown.

Suggested Citation

  • Beatty, Timothy K.M., 2006. "Zero Expenditures and Engel Curve Estimation," 2006 Annual meeting, July 23-26, Long Beach, CA 21052, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea06:21052
    DOI: 10.22004/ag.econ.21052
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    Cited by:

    1. Gaurav Nayyar, 2009. "The Demand for Services in India. A Mirror Image of Engel's Law for Food?," Economics Series Working Papers 451, University of Oxford, Department of Economics.

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    Keywords

    Consumer/Household Economics;

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