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An Engel Curve Analysis of Household Expenditure in New Zealand

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  • DAVID E. A. GILES
  • PETER HAMPTON

Abstract

In this paper we estimate systems of Engel curves for expenditure on eight commodity groups by New Zealand households. Six model specifications are considered, and the preferred results are based on the Almost Ideal Demand System. The estimated expenditure elasticities and marginal budget shares are quite insensitive, at the sample mean, to the choice of functional form. The results are compared with those from other Australasian, British and American studies.

Suggested Citation

  • David E. A. Giles & Peter Hampton, 1985. "An Engel Curve Analysis of Household Expenditure in New Zealand," The Economic Record, The Economic Society of Australia, vol. 61(1), pages 450-462, March.
    • Handle: RePEc:bla:ecorec:v:61:y:1985:i:1:p:450-462
    DOI: 10.1111/j.1475-4932.1985.tb01997.x
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    References listed on IDEAS

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    Cited by:

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    2. David Giles & Andrea Keil, 1997. "Applying the RESET test in allocation models: a cautionary note," Applied Economics Letters, Taylor & Francis Journals, vol. 4(6), pages 359-363.
    3. Nadeem A. Burney & Ashfaque H. Khan, 1991. "Household Consumption Patterns in Pakistan: An Urban-Rural Comparison Using Micro Data," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 30(2), pages 145-171.
    4. Khaled, Mohammed & Lattimore, Ralph, 2006. "The changing demand for apparel in New Zealand and import protection," Journal of Asian Economics, Elsevier, vol. 17(3), pages 494-508, June.
    5. Pablo Garcia_S., 2000. "Income Inequality and the Real Exchange Rate," Econometric Society World Congress 2000 Contributed Papers 0849, Econometric Society.
    6. Srikanta Chatterjee & Claudio Michelini & Ranjan Ray, 1994. "Expenditure Patterns and Aggregate Consumer Behaviour: Some Experiments with Australian and New Zealand Data," The Economic Record, The Economic Society of Australia, vol. 70(210), pages 278-291, September.
    7. Michelini, Claudio, 1999. "The estimation of a rank 3 demand system with demographic demand shifters from quasi-unit record data of household consumption," Economics Letters, Elsevier, vol. 65(1), pages 17-24, October.
    8. Binh Tran‐Nam & Nripesh Podder, 1992. "On the Estimation of Total Expenditure Elasticities from Derived Engel Functions with Applications to Australian Micro‐Data," The Economic Record, The Economic Society of Australia, vol. 68(2), pages 142-150, June.
    9. Chung, Rebecca H. & Lee, Jonq-Ying & Brown, Mark G., 2002. "An Engel Curve Analysis of Household Expenditure in Taiwan: 1996-98," Research papers 53388, Florida Department of Citrus.
    10. Kübra ÖNDER, 2017. "The Effect of the Period that Turkey is going Through on the Household Expenditures of Burdur Province: Engel Curve Analysis," Turkish Economic Review, KSP Journals, vol. 4(2), pages 216-225, June.
    11. S. Chatterjee & R. Ray, 1992. "Estimating Complete Demand Systems on Household Budget Data: Evidence for Australia and New Zealand," Economics Discussion / Working Papers 92-12, The University of Western Australia, Department of Economics.
    12. Pablo García, 1999. "Income Inequality and the Real Exchange Rate," Working Papers Central Bank of Chile 54, Central Bank of Chile.
    13. BuShehri, Mahmoud A.M. & Wohlgenant, Michael K., 2012. "Measuring the welfare effects of reducing a subsidy on a commodity using micro-models: An application to Kuwait's residential demand for electricity," Energy Economics, Elsevier, vol. 34(2), pages 419-425.

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