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Engel Curves and Equivalence Scales for Bangladesh

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  • Syed Abul Hasan

Abstract

This paper examines the Engel curve for major expenditure categories and estimates equivalence scales for Bangladesh. We compare Engel curves estimated by semi-parametric techniques to those arising from models based on consumer theory. Our analysis supports the argument that quadratic food Engel curves are a feature of developing countries. Knowledge about the correct specification of the Engel curve has important implications for modelling household responses to negative income shocks.

Suggested Citation

  • Syed Abul Hasan, 2012. "Engel Curves and Equivalence Scales for Bangladesh," ASARC Working Papers 2012-15, The Australian National University, Australia South Asia Research Centre.
    • Handle: RePEc:pas:asarcc:2012-15
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    File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2012/WP2012_15.pdf
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    Cited by:

    1. Odmaa Narantungalag,, 2022. "The effects of natural resource extraction on household expenditure patterns: Evidence from Mongolia," Discussion Papers 2204, School of Economics and Finance, Massey University, New Zealand.
    2. Tanvir Pavel & Syed Hasan & Nafisa 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.
    3. Hasan, Syed Abul & Mozumder, Pallab, 2017. "Income and energy use in Bangladesh: A household level analysis," Energy Economics, Elsevier, vol. 65(C), pages 115-126.
    4. Steven F. Koch, 2021. "Equivalence Scales with Endogeneity and Base Independence," Working Papers 202185, University of Pretoria, Department of Economics.
    5. Nsabimana, Aimable & Rukundo, Bosco Johnson & Mukamugema, Alice & Ngabitsinze, Jean Chrysostome, 2022. "Residential energy demands in Rwanda: Evidence from Robust models," Energy Policy, Elsevier, vol. 160(C).
    6. Steven F. Koch, 2022. "Equivalence scales in a developing country with extensive inequality," South African Journal of Economics, Economic Society of South Africa, vol. 90(4), pages 486-512, December.
    7. Narantungalag, Odmaa, 2022. "The effects of natural resource extraction on household expenditure patterns: Evidence from Mongolia," GLO Discussion Paper Series 1077, Global Labor Organization (GLO).
    8. Muhammad Shafiullah & Zhilun Jiao & Muhammad Shahbaz & Kangyin Dong, 2023. "Examining energy poverty in Chinese households: An Engel curve approach," Australian Economic Papers, Wiley Blackwell, vol. 62(1), pages 149-184, March.
    9. Md. Matiur Rahman & Seung-Hoon Jeon & Kyoung-Soo Yoon, 2020. "Estimation of Equivalence Scale and Assessment of Its Impact on Poverty Measurement in Bangladesh," Sustainability, MDPI, vol. 12(21), pages 1-13, October.
    10. Rahman, Kazi Tamim & Shanoyan, Aleksan & Hovhannisyan, Vardges, 2021. "Food Commodity Price Hikes, Public Policy, and Consumer Welfare: Lessons from Bangladesh," 2021 Annual Meeting, August 1-3, Austin, Texas 314076, Agricultural and Applied Economics Association.
    11. Kaicker, Nidhi & Gupta, Aashi & Gaiha, Raghav, 2022. "Covid-19 pandemic and food security in India: Can authorities alleviate the disproportionate burden on the disadvantaged?," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 963-980.
    12. Syed Hasan & Nazmun Ratna & Shamim Shakur, 2019. "Exchange rate, remittances and expenditure of foreign-bornhouseholds: evidence from Australia," Discussion Papers 1901, School of Economics and Finance, Massey University, New Zealand.
    13. Jayasinghe, Maneka & Chai, Andreas & Ratnasiri, Shyama & Smith, Christine, 2017. "The power of the vegetable patch: How home-grown food helps large rural households achieve economies of scale & escape poverty," Food Policy, Elsevier, vol. 73(C), pages 62-74.
    14. Aimable Nsabimana & Ranjula Bali Swain & Yves Surry & Jean Chrysostome Ngabitsinze, 2020. "Income and food Engel curves in Rwanda: a household microdata analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-20, December.
    15. 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.

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    More about this item

    Keywords

    Engel Curve; Semi-parametric Estimation; Semi-nonparametric Estimation; Partial Linear Model; Equivalence Scale; Base Independence; Shape Invariance;
    All these keywords.

    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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