Household Demand in the Asia Pacific Countries

Maneka Jayasinghe, Eliyathamby A. Selvanathan, Saroja Selvanathan, R. K. Mondal

    Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

    Abstract

    Since the pioneering work of Engel, Engel curves have become an integral part in many areas of consumption economics. Early studies on the analysis of household expenditures, however, mainly used linear Engel curves. The poor performance of these linear forms of Engel curves led researchers to investigate other functional forms to estimate Engel curves. A majority of the recent work on Engel function estimations has made allowances for household size and compositional differences by introducing an additional variable on household size into the Engel curve specification together with household expenditure. The conventional approach of estimating the income elasticities is to select an appropriate functional form, such as linear, log-linear or log-log for each commodity to estimate Engel curves and then to use the estimated parameters to obtain the income elasticity estimates at any level of household income. However, the use of cross-sectional data to estimate demand equations and thereby demand elasticities partly simplifies the estimation.
    Original languageEnglish
    Title of host publicationHousehold Demand for Consumer Goods in Developing Countries
    Subtitle of host publicationA Comparative Perspective with Developed Countries
    EditorsSelva Selvanathan, Saroja Selvanathan, Maneka Jayasinghe
    Place of PublicationLondon
    PublisherRoutledge Taylor & Francis Group
    Chapter5
    Pages1-56
    Number of pages56
    Edition1
    ISBN (Electronic)9780429200120
    Publication statusPublished - 2022

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