IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Intra-household Distribution of Expenditures in Rural Ethiopia: A Demand Systems Approach

Listed author(s):
  • Bereket Kebede

This paper examines the combined effects of changes in prices, income and demographic composition on adult and young, male and female members of households. The recently developed Quadratic Almost Ideal Demand System (QUAIDS) is used since a demand system provides a unified framework for analysing the combined effects in a systematic fashion. The ‘outlay equivalent method’, which was used with single demand equations in previous studies, is married to the demand system literature. Underlying preference structures for classifying goods into different groups is also examined by conducting alternative tests of separability in preferences. Panel/longitudinal data are used helping to control for household level heterogeneity. The empirical results show that Ethiopian rural households respond to price, income and demographic changes in a more complicated manner than usually assumed; demographic groups absorbing most of the impact differ for different types of changes. Changes in household income affect male members of households (men and boys) more than female members (women and girls). On the other hand, changes in price affect women and boys more than men and girls. In addition, adjustments in household expenditure due to demographic changes imply that boys are favoured relative to girls. But the overall position of boys and girls in the household depends not only on the ‘outlay equivalent ratios’ but also on the effects of changes in household income and prices as determined by budget and price elasticities. These findings show that households distribute risks among different demographic groups rather than only one group absorbing all shocks. The findings indicate that studies that only looked at the ‘outlay equivalent ratios’ tell only part of the story.

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:
Download Restriction: no

Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2003-08.

in new window

Date of creation: 2003
Handle: RePEc:csa:wpaper:2003-08
Contact details of provider: Postal:
Manor Road, Oxford, OX1 3UQ

Phone: +44-(0)1865 271084
Fax: +44-(0)1865 281447
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

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:csa:wpaper:2003-08. 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: (Richard Payne)

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.