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Sexual Bias and Household Consumption: A Semiparametric Analysis of Engel Curves in Rural China

  • Gong, Xiaodong

    ()

    (NATSEM, University of Canberra)

  • van Soest, Arthur

    ()

    (Tilburg University)

  • Zhang, Ping

    ()

    (Western Michigan University)

We analyze Engel curves for nuclear households in rural China. The sample includes more than 5000 nuclear families covering nineteen out of thirty Chinese provinces. We consider expenditures on food, also subdivided into several food subcategories such as cereals, or meat and fish, and other consumption categories such as alcohol and tobacco, medical, and educational goods. We use the semiparametric partially linear model. This allows for any functional form relationship between the budget shares and total expenditures, but assumes that the demographic variables enter the model in a linear way. We correct for potential endogeneity of total expenditures. Our results suggest that there are economies of scale in families' consumption expenditure patterns. We find some differences in consumption patterns which relate to differences in gender of children, which can be seen as evidence of sexual bias related to a commonly believed existing preference for boys.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 212.

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Length: 39 pages
Date of creation: Nov 2000
Date of revision:
Handle: RePEc:iza:izadps:dp212
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  1. Fan, Shenggen & Cramer, Gail & Wailes, Eric, 1994. "Food demand in rural China: evidence from rural household survey," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 11(1), September.
  2. Ahmad, A. & Morduch, J., 1993. "Identifying Sex Bias in the Allocation of Household Resources: Evidence from Linked Household Surveys from Bangladesh," Harvard Institute of Economic Research Working Papers 1636, Harvard - Institute of Economic Research.
  3. Haerdle,Wolfgang Jerison,Michael, 1988. "Cross section Engel curves over time," Discussion Paper Serie A 160, University of Bonn, Germany.
  4. Joel L. Horowitz, 1998. "Bootstrap Methods for Median Regression Models," Econometrica, Econometric Society, vol. 66(6), pages 1327-1352, November.
  5. Deaton, Angus S, 1989. "Looking for Boy-Girl Discrimination in Household Expenditure Data," World Bank Economic Review, World Bank Group, vol. 3(1), pages 1-15, January.
  6. 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.
  7. Newey, Whitney K & Powell, James L & Walker, James R, 1990. "Semiparametric Estimation of Selection Models: Some Empirical Results," American Economic Review, American Economic Association, vol. 80(2), pages 324-28, May.
  8. Hausman, Jerry A. & Newey, Whitney K. & Ichimura, Hidehiko & Powell, James L., 1991. "Identification and estimation of polynomial errors-in-variables models," Journal of Econometrics, Elsevier, vol. 50(3), pages 273-295, December.
  9. Oliver LINTON, . "Applied nonparametric methods," Statistic und Oekonometrie 9312, Humboldt Universitaet Berlin.
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  11. Hausman, J. A. & Newey, W. K. & Powell, J. L., 1995. "Nonlinear errors in variables Estimation of some Engel curves," Journal of Econometrics, Elsevier, vol. 65(1), pages 205-233, January.
  12. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
  13. Richard Blundell & Alan Duncan & Krishna Pendakur, 1998. "Semiparametric estimation and consumer demand," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(5), pages 435-461.
  14. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  15. Martin Browning & Ramesh Subramaniam, 1994. "Gender Bias in India: Parental Preferences or Marriage Costs?," CRIEFF Discussion Papers 9415, Centre for Research into Industry, Enterprise, Finance and the Firm.
  16. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-97, June.
  17. Robinson, Peter M, 1988. "Root- N-Consistent Semiparametric Regression," Econometrica, Econometric Society, vol. 56(4), pages 931-54, July.
  18. Lewbel, Arthur, 1991. "The Rank of Demand Systems: Theory and Nonparametric Estimation," Econometrica, Econometric Society, vol. 59(3), pages 711-30, May.
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