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The Missing Income Problem In The Analyses Of Engel Functions

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  • Capps, Oral, Jr.
  • Cheng, Hsiang-Tai

Abstract

The empirical evidence from the extant literature in demand analysis points to the importance of income in food expenditure relationships. However, roughly 30 percent of all households in the 1977-78 Nationwide Food Consumption Survey do not report income figures. The focus of this paper is on the missing income problem in analyses of Engel functions. This analysis statistically links particular demographic attributes in affecting the probability of reporting income information. Additionally, several techniques to overcome the missing income problem, namely, regression imputation, the Heckman procedure, and item deletion, are discussed. Empirical evidence suggests that the Heckman procedure is statistically superior to item deletion, and that regression imputation and the Heckman procedure yield similar results.

Suggested Citation

  • Capps, Oral, Jr. & Cheng, Hsiang-Tai, 1986. "The Missing Income Problem In The Analyses Of Engel Functions," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(01), pages 1-9, July.
    • Handle: RePEc:ags:wjagec:32542
    DOI: 10.22004/ag.econ.32542
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    References listed on IDEAS

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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Ferber, Robert, 1973. "Consumer Economics, A Survey," Journal of Economic Literature, American Economic Association, vol. 11(4), pages 1303-1342, December.
    3. J. Aitchison & J. A. C. Brown, 1954. "A Synthesis of Engel Curve Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 22(1), pages 35-46.
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    Cited by:

    1. Yen, Steven T. & Huang, Chung L., 1996. "Household Demand For Finfish: A Generalized Double-Hurdle Model," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(2), pages 1-15, December.
    2. Nayga, Rodolfo M., Jr. & Capps, Oral, Jr., 1994. "Analysis Of Alcohol Consumption In The United States: Probability And Level Of Intake," Journal of Food Distribution Research, Food Distribution Research Society, vol. 25(2), pages 1-7, September.
    3. Koontz, Stephen R. & Unnevehr, Laurian J., "undated". "An Analysis of Meat Income Elasticities by Income Group," 1987 Annual Meeting, August 2-5, East Lansing, Michigan 270091, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Hsiang-tai Cheng & Oral Capps, 1988. "Demand Analysis of Fresh and Frozen Finfish and Shellfish in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 533-542.
    5. Young, Katherine D. & Shumway, C. Richard, 1991. "Cow-Calf Producers' Perceived Profit Maximization Objective: A Logit Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 23(1), pages 129-136, July.

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