Engel curves and equivalence scales for Bangladesh

Vol: 
2012/15
Author name: 
Syed Abul Hasan
Year: 
2012
Month: 
September
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.

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