IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Inequality decomposition of farm family living expenditures and the role of the life cycle

  • Hisham S. El-Osta
Registered author(s):

    Purpose – The purpose of this paper is to use data from the 2007 Agricultural Resource Management Survey to assess the inequality in the distribution of farm family living expenditures. The impact on inequality of marginal increases in expenditure components with respect to aggregate expenditures is also addressed in the context of the life cycle and under various “equity” weights that reflect the extent to which society is averse to inequality. Design/methodology/approach – Inequality in the distribution of households' equivalent-scale total expenditures E and of their K components is measured using the concept of the extended Gini coefficient (GE). Findings – Results show an unequal distribution of total expenditures, with “food including food away from home” and “clothing, personal care products, etc.” as the two expenditure items that are most suitable for either a subsidy or a tax-hike. No discernable statistical difference is found when the elasticities of expenditures were estimated across two distinct age-groups and across various levels of “equity” weights. Research limitations/implications – Research is based on cross-sectional data and does not allow for dynamic assessment of expenditure elasticities. Originality/value – The paper describes the use of an innovative non-parametric method to estimate expenditure elasticities among farm households.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.emeraldinsight.com/journals.htm?issn=0002-1466&volume=70&issue=2&articleid=1876536&show=abstract
    Download Restriction: Cannot be freely downloaded

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Emerald Group Publishing in its journal Agricultural Finance Review.

    Volume (Year): 70 (2010)
    Issue (Month): 2 (August)
    Pages: 245-266

    as
    in new window

    Handle: RePEc:eme:afrpps:v:70:y:2010:i:2:p:245-266
    Contact details of provider: Web page: http://www.emeraldinsight.com

    Order Information: Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
    Web: http://emeraldgrouppublishing.com/products/journals/journals.htm?id=afr Email:


    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.:

    as in new window
    1. P. Lazaridis, 2000. "Decomposition of Food Expenditure Inequality: An Application of the Extended Gini Coefficient to Greek Micro-Data," Social Indicators Research, Springer, vol. 52(2), pages 179-193, November.
    2. Richard Blundell & Martin Browning & Ian Crawford, 1997. "Non-parametric Engel curves and revealed preferences," IFS Working Papers W97/14, Institute for Fiscal Studies.
    3. Shlomo Yitzhaki & Joel Slemrod, 1987. "Welfare Dominance: An Application to Commodity Taxation," NBER Working Papers 2451, National Bureau of Economic Research, Inc.
    4. Pudney, Stephen, 1993. "Income and Wealth Inequality and the Life Cycle: A Non-parametric Analysis for China," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(3), pages 249-76, July-Sept.
    5. Tran-Nam, Binh & Podder, Nripesh, 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(201), pages 142-50, June.
    6. Melenberg, B. & van Soest, A.H.O., 1996. "Parametric and semi-parametric modelling of vacation expenditures," Other publications TiSEM 14de3e83-71c1-4e9a-aa5e-3, Tilburg University, School of Economics and Management.
    7. Ravallion, Martin, 1996. "Issues in Measuring and Modelling Poverty," Economic Journal, Royal Economic Society, vol. 106(438), pages 1328-43, September.
    8. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
    9. Pollak, Robert A, 1970. "Habit Formation and Dynamic Demand Functions," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 745-63, Part I Ju.
    10. Atkinson, A B & Gomulka, J & Stern, N H, 1990. "Spending on Alcohol: Evidence from the Family Expenditure Survey 1970-1983," Economic Journal, Royal Economic Society, vol. 100(402), pages 808-27, September.
    11. Smallwood, David & Blaylock, James R., 1981. "Impact of Household Size and Income on Food Spending Patterns," Technical Bulletins 157048, United States Department of Agriculture, Economic Research Service.
    12. Burkhauser, Richard V. & Smeeding, Timothy M. & Merz, Joachim, 1994. "Relative Inequality and Poverty in Germany and the United States Using Alternative Equivalence Scales," MPRA Paper 7229, University Library of Munich, Germany.
    13. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-56, February.
    14. E. John Driffill & Harvey S. Rosen, 1981. "Taxation and Excess Burden: A Life-Cycle Perspective," NBER Working Papers 0698, National Bureau of Economic Research, Inc.
    15. Blaylock, James R & Smallwood, David M, 1982. "Analysis of Income and Food Expenditure Distributions: A Flexible Approach," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 104-09, February.
    16. Burkhauser, Richard V & Frick, Joachim R & Schwarze, Johannes, 1997. "A Comparison of Alternative Measures of Economic Well-Being for Germany and the United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(2), pages 153-71, June.
    17. Deaton, Angus S & Ruiz-Castillo, Javier & Thomas, Duncan, 1989. "The Influence of Household Composition on Household Expenditure Patterns: Theory and Spanish Evidence," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 179-200, February.
    18. Yitzhaki, Shlomo, 1990. "On the Effect of Subsidies to Basic Food Commodities in Egypt," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 772-92, October.
    19. Delgado, Miguel A & Miles, Daniel, 1997. "Household Characteristics and Consumption Behaviour: A Nonparametric Approach," Empirical Economics, Springer, vol. 22(3), pages 409-29.
    20. David E. Sahn & Stephen D. Younger, 2000. "Expenditure incidence in Africa: microeconomic evidence," Fiscal Studies, Institute for Fiscal Studies, vol. 21(3), pages 329-347, September.
    21. Richard Blundell & Ian Preston, 1998. "Consumption Inequality And Income Uncertainty," The Quarterly Journal of Economics, MIT Press, vol. 113(2), pages 603-640, May.
    22. Zapata, Hector O. & Sulgham, Anil K., 2006. "A Semiparametric Approach to Estimate Engel curves using the US Micro Data," 2006 Annual meeting, July 23-26, Long Beach, CA 21092, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    23. Pyatt, Graham & Chen, Chau-nan & Fei, John, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, MIT Press, vol. 95(3), pages 451-73, November.
    24. Lerman, Robert I. & Yitzhaki, Shlomo, 1989. "Improving the accuracy of estimates of Gini coefficients," Journal of Econometrics, Elsevier, vol. 42(1), pages 43-47, September.
    25. Brian W. Gould, 2002. "Household composition and food expenditures in China," Agribusiness, John Wiley & Sons, Ltd., vol. 18(3), pages 387-407.
    26. Bruce D. Meyer & James X. Sullivan, 2003. "Measuring the Well-Being of the Poor Using Income and Consumption," NBER Working Papers 9760, National Bureau of Economic Research, Inc.
    27. Erling Larsen, 2009. "Using inverted Engel curves to estimate material standards of living in a household," Empirical Economics, Springer, vol. 36(1), pages 109-132, February.
    28. Francisco J. Goerlich Gisbert, 2003. "Weighted samples, kernel density estimators and convergence," Empirical Economics, Springer, vol. 28(2), pages 335-351, 04.
    29. Yitzhaki, Shlomo, 1983. "On an Extension of the Gini Inequality Index," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 617-28, October.
    30. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eme:afrpps:v:70:y:2010:i:2:p:245-266. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.