Why Does the Engel Method Work? Food Demand, Economies of Size and Household Survey Methods
Estimates of household size economies are needed for the analysis of poverty and inequality. This paper shows that Engel estimates of size economies are large when household expenditures are obtained by respondent recall but small when expenditures are obtained by daily recording in diaries. Expenditure estimates from recall surveys appear to have measurement errors correlated with household size. As well as demonstrating the fragility of Engel estimates of size economies, these results help resolve a puzzle raised by Deaton and Paxson (1998) about differences between rich and poor countries in the effect of household size on food demand. Copyright 2002 by Blackwell Publishing Ltd
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Volume (Year): 64 (2002)
Issue (Month): 4 (September)
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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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"Poverty and household size,"
Policy Research Working Paper Series
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"Economies of Scale, Household Size, and the Demand for Food,"
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- Deaton, A. & Paxson, C., 1997. "Economies of Scale, Household Size, and the Demand for Food," Papers 178, Princeton, Woodrow Wilson School - Development Studies.
- Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-82, September.
- Isabel McWhinney & Harold Champion, 1974. "The Canadian Experience With Recall And Diary Methods In Consumer Expenditure Surveys," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 3, number 2, pages 411-437 National Bureau of Economic Research, Inc.
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