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Unpacking Household Engel Curves

Author

Listed:
  • Philippe de Vreyer

    (DIAL - Développement, institutions et analyses de long terme, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)

  • Sylvie Lambert

    (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Martin Ravallion

    (GU - Georgetown University [Washington])

Abstract

We model sub-household budget allocations using an unusual data setfor Senegal. Aggregating to the household level reveals confounding factors instandard Engel curves, including intra-household inequality. Except for educationspending, our results are consistent with the separable structures found in twostage bargaining and collective models of the household. However, we find largediscrepancies between the standard household Engel-curve estimates andconsistently aggregated sub-household estimates, though in differing degrees anddirections depending on the type of commodity. The main source of thisdiscrepancy is a household effect on sub-household spending behavior, which ispartially offset by differences in intra-household inequality.

Suggested Citation

  • Philippe de Vreyer & Sylvie Lambert & Martin Ravallion, 2023. "Unpacking Household Engel Curves," Working Papers hal-03963074, HAL.
    • Handle: RePEc:hal:wpaper:hal-03963074
    Note: View the original document on HAL open archive server: https://hal.science/hal-03963074
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    Cited by:

    1. Calvi, Rossella & Penglase, Jacob & Tommasi, Denni & Wolf, Alexander, 2023. "The more the poorer? Resource sharing and scale economies in large families," Journal of Development Economics, Elsevier, vol. 160(C).
    2. Clemens, Michael A., 2020. "The Emigration Life Cycle: How Development Shapes Emigration from Poor Countries," IZA Discussion Papers 13614, Institute of Labor Economics (IZA).
    3. Kabeya Clement Mulamba, 2022. "Relationship between households’ share of food expenditure and income across South African districts: a multilevel regression analysis," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-11, December.
    4. Rossella Calvi & Jacob Penglase & Denni Tommasi & Alexander Wolf, 2020. "Resource Sharing and Scale Economies in Large Families," SoDa Laboratories Working Paper Series 2020-09, Monash University, SoDa Laboratories.
    5. Echeverría, Lucía, 2020. "Modelos colectivos de consumo y distribución intra-hogar. Teoría y aplicaciones," Nülan. Deposited Documents 3832, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    6. Emilia Madudova & Tatiana Corejova, 2023. "The Issue of Measuring Household Consumption Expenditure," Economies, MDPI, vol. 12(1), pages 1-15, December.

    More about this item

    Keywords

    Engel curves; Intrahousehold inequality; Heterogeneity; Senegal;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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