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Engel curves and equivalence scales for Bangladesh

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  • Syed Abul Hasan

Abstract

This paper examines the Engel curves for major expenditure categories in Bangladesh with a particular attention to their specifications. Our semi-parametric model indicates a quadratic Engel curve for most of the expenditure categories, including food, and thus provides additional evidence to the argument for a quadratic food Engel curve for developing countries. As household expenditure increases, expenditures on some food categories like protein and non-home-made food increase at a faster rate, resulting in a quadratic food Engel curve. Our analysis demonstrates that knowledge about the correct specification of the Engel curves has important implications for modeling household responses to the negative income shocks. Such knowledge can be particularly useful for the developing countries where governments aim to protect the low-income households from such shocks.

Suggested Citation

  • Syed Abul Hasan, 2016. "Engel curves and equivalence scales for Bangladesh," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(2), pages 301-315, April.
  • Handle: RePEc:taf:rjapxx:v:21:y:2016:i:2:p:301-315
    DOI: 10.1080/13547860.2015.1137471
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    References listed on IDEAS

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    Cited by:

    1. Tanvir Pavel & Syed Hasan & Naï¬ sa Halim & Pallab Mozumder, 2018. "Natural Hazards and Internal Migration: The Role of Transient versus Permanent Shocks," Working Papers 1806, Florida International University, Department of Economics.
    2. Syed Abul Hasan, 2013. "The impact of a large rice price increase on welfare and poverty in Bangladesh," ASARC Working Papers 2013-11, The Australian National University, Australia South Asia Research Centre.
    3. repec:eee:jfpoli:v:73:y:2017:i:c:p:62-74 is not listed on IDEAS

    More about this item

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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