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The expenditure elasticity for food and calories: Evidence from unconditional cash transfers in Kenya

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  • Almås, Ingvild
  • Haushofer, Johannes
  • Kjelsrud, Anders

Abstract

Accurate estimates of food and nutrient elasticities are important inputs for the design of efficient policies targeting the poor. In this paper we estimate the expenditure elasticity of food and calories using exogenous variation in budget from two unconditional cash transfer programs in rural Kenya, combined with detailed data on food expenditure, nutrition and prices. We find an elasticity of food expenditure of 0.86 and of calories of 0.66. Although these estimates are higher than those reported in many previous studies — plausibly because our study focuses on extremely poor households — they are significantly lower than those obtained using a non-experimental analysis in our context.

Suggested Citation

  • Almås, Ingvild & Haushofer, Johannes & Kjelsrud, Anders, 2026. "The expenditure elasticity for food and calories: Evidence from unconditional cash transfers in Kenya," Journal of Development Economics, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:deveco:v:183:y:2026:i:c:s0304387826001525
    DOI: 10.1016/j.jdeveco.2026.103869
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    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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