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The Effect of Income on Demand for Micronutrients in Poor Rural Mexico

Author

Listed:
  • Emmanuel Skoufias
  • Vincenzo Di Maro
  • Teresa Gonzales-Cassio
  • Sonia Rodriguez

Abstract

We estimate income elasticities for a variety of macro- and micro-nutrients using a sample of poor rural households in Mexico. The nutrient-income elasticity is estimated using a linear regression model controlling both for the clustered nature of our data and for the bias due to measurement error in nutrient consumption at the household level. Our preferred estimates (instrumental variable-fixed effect specification for the sample of all households) show a sizeable positive elasticity for some nutrients (especially vitamin A 0.8, vitamin C 0.69 and calcium 0.45). For other nutrients the effect of income on the consumption is still significant but very small (elasticity for fiber is only 0.09 and for iron 0.08). We also test for the robustness of our estimates using a semi-parametric estimator (partially linear model) and whether the presence of zero consumption for specific micronutrients in our sample, such as cholesterol and heme iron, can be a source of bias for our estimates.

Suggested Citation

  • Emmanuel Skoufias & Vincenzo Di Maro & Teresa Gonzales-Cassio & Sonia Rodriguez, 2006. "The Effect of Income on Demand for Micronutrients in Poor Rural Mexico," Discussion Papers 20_2006, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
  • Handle: RePEc:prt:dpaper:20_2006
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    File URL: http://economia.uniparthenope.it/ise/sito/DP/DP_20_2006.pdf
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    References listed on IDEAS

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    1. Behrman, Jere R & Deolalikar, Anil B, 1987. "Will Developing Country Nutrition Improve with Income? A Case Study for Rural South India," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 492-507, June.
    2. Subramanian, Shankar & Deaton, Angus, 1996. "The Demand for Food and Calories," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 133-162, February.
    3. Pitt, Mark M & Rosenzweig, Mark R, 1985. "Health and Nutrient Consumption across and within Farm Households," The Review of Economics and Statistics, MIT Press, vol. 67(2), pages 212-223, May.
    4. Strauss, John & Thomas, Duncan, 1995. "Human resources: Empirical modeling of household and family decisions," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.),Handbook of Development Economics, edition 1, volume 3, chapter 34, pages 1883-2023, Elsevier.
    5. Skoufias, Emmanuel, 2003. "Is the Calorie-Income Elasticity Sensitive to Price Changes? Evidence from Indonesia," World Development, Elsevier, vol. 31(7), pages 1291-1307, July.
    6. Strauss, J. & Thomas, D., 1995. "Empirical Modeling of Household and Family Decisions," Papers 95-12, RAND - Reprint Series.
    7. Bouis, Howarth E. & Haddad, Lawrence J., 1992. "Are estimates of calorie-income fxelasticities too high? : A recalibration of the plausible range," Journal of Development Economics, Elsevier, vol. 39(2), pages 333-364, October.
    8. Behrman, Jere R. & Wolfe, Barbara L., 1987. "How does mother's schooling affect family health, nutrition, medical care usage, and household sanitation?," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 185-204.
    9. Strauss, John, 1984. "Joint determination of food consumption and production in rural Sierra Leone : Estimates of a household-firm model," Journal of Development Economics, Elsevier, vol. 14(1), pages 77-103.
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    More about this item

    Keywords

    vitamin A ; vitamin C; folate; iron; zinc; calcium; calories; protein; fat; carbohydrates; Income elasticity; partially linear model.;

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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