Unpacking Household Engel Curves
De Vreyer, Philippe; Lambert, Sylvie; Ravallion, Martin (2020), Unpacking Household Engel Curves. https://basepub.dauphine.psl.eu/handle/123456789/23916
TypeDocument de travail / Working paper
Université Paris Dauphine - PSL
Series titleDocument de Travail DIAL
MetadataShow full item record
Author(s)De Vreyer, Philippe
Développement, institutions et analyses de long terme [DIAL]
Laboratoire d'Economie de Dauphine [LEDa]
Paris Jourdan Sciences Economiques [PJSE]
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 / KeywordsEngel curves; intrahousehold inequality; heterogeneity; Senegal
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