Does Income Really Matter? Nonparametric and Parametric Estimates of the Demand for Calories in Tanzania
This study employs both nonparametric and parametric methods to examine the influence of household expenditure and other demographic variables on household consumption of calories in Tanzania, using recent survey data. Under each estimation strategy we employ, we find significant and positive relationship between household expenditure and calorie consumption. Even with an estimation strategy that ensures consistent estimates in the presence of measurement error, the calorie-expenditure elasticity is 0.46, a finding that is consistent with the traditional view that, increases in household income will improve calorie intake and help alleviate inadequate nutrition.
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