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Household Characteristics and Consumption Behaviour: A Nonparametric Approach

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  • Delgado, Miguel A
  • Miles, Daniel

Abstract

In this paper we apply nonparametric methods in order to discuss some empirical aspects of household consumption behavior First, we study the differences in the consumption behaviour between household types. We find that, except for food, there are no clear significant differences. Secondly, we derive the functional form for the food Engel curve, using specification tests consistent in the direction of nonparametric alternatives. Finally, we use this specification to discuss the misleading conclusions that could be reached from a mechanic interpretation of the rejection of Hausman's test, when applied to test the exogeneity of expenditure. The data is obtained from the Spanish Expenditure Survey 1980-81 and 1990-91.

Suggested Citation

  • Delgado, Miguel A & Miles, Daniel, 1997. "Household Characteristics and Consumption Behaviour: A Nonparametric Approach," Empirical Economics, Springer, vol. 22(3), pages 409-429.
    • Handle: RePEc:spr:empeco:v:22:y:1997:i:3:p:409-29
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    1. Meghir, Costas & Robin, Jean-Marc, 1992. "Frequency of purchase and the estimation of demand systems," Journal of Econometrics, Elsevier, vol. 53(1-3), pages 53-85.
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    9. 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.
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    1. Mien, Toh Siaw & Said, Rusmawati, 2018. "A Cross-sectional Household Analysis of Household Consumption Patterns: An Indirect Approach to Identify the Possible Factors of Personal Bankruptcy," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 231-246.
    2. Soregaroli, Claudio & Huff, Karen & Meilke, Karl D., 2002. "Demand System Choice Based On Testing The Engel Curve Specification," Working Papers 34139, University of Guelph, Department of Food, Agricultural and Resource Economics.
    3. Sonia Bhalotra & Cliff Attfield, 1998. "Intrahousehold resource allocation in rural Pakistan: a semiparametric analysis," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 463-480.
    4. Noyan Aydin Taner Akmercan, 2016. "Forecasting of Households Consumption Expenditure with Nonparametric Regression: The Case of Turkey," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 19(2), pages 19-32, November.
    5. Juan Gabriel Rodríguez & Rafael Salas, 2004. "A Bistochastic Nonparametric Estimator," Economic Working Papers at Centro de Estudios Andaluces E2004/22, Centro de Estudios Andaluces.
    6. Basu, Bharati, 2021. "Do institutional norms affect behavioral preferences: A view from gender bias in the intra-household expenditure allocation in Iran," Economic Modelling, Elsevier, vol. 97(C), pages 118-134.
    7. Hisham S. El‐Osta, 2010. "Inequality decomposition of farm family living expenditures and the role of the life cycle," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 70(2), pages 245-266, August.

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