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Unpacking Household Engel Curves

De Vreyer, Philippe; Lambert, Sylvie; Ravallion, Martin (2020), Unpacking Household Engel Curves. https://basepub.dauphine.psl.eu/handle/123456789/23916

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DIAL DT2020-10.pdf (1.594Mb)
Type
Document de travail / Working paper
Date
2020
Publisher
Université Paris Dauphine - PSL
Series title
Document de Travail DIAL
Series number
DT/2020-10
Published in
Paris
Pages
31
Metadata
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Author(s)
De Vreyer, Philippe
Développement, institutions et analyses de long terme [DIAL]
Laboratoire d'Economie de Dauphine [LEDa]
Lambert, Sylvie cc
Paris Jourdan Sciences Economiques [PJSE]
Ravallion, Martin
Abstract (EN)
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.
Subjects / Keywords
Engel curves; intrahousehold inequality; heterogeneity; Senegal
JEL
D12 - Consumer Economics: Empirical Analysis
D13 - Household Production and Intrahousehold Allocation
O12 - Microeconomic Analyses of Economic Development

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