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How Reliable are Household Expenditures as a Proxy for Permanent Income? Implications for the Income-Nutrition Relationship

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Abstract
Measurement error in short-run expenditures from household surveys may attenuate estimated effects of permanent income on economic outcomes. Repeated observations on households during the year are used to calculate reliability ratios and estimate errors in variables regressions of the impact of income on calorie intakes. In contrast to influential studies finding no effect of income, the results suggest significant nutritional responses to income in poor countries.

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  • John Gibson & Bonggeun Kim, 2011. "How Reliable are Household Expenditures as a Proxy for Permanent Income? Implications for the Income-Nutrition Relationship," Working Papers in Economics 11/03, University of Waikato.
    • Handle: RePEc:wai:econwp:11/03
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    File URL: https://repec.its.waikato.ac.nz/wai/econwp/1103.pdf
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    1. 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.
    2. 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.
    3. Timothy J. Halliday, 2010. "Mismeasured Household Size and its Implications for the Identification of Economies of Scale," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(2), pages 246-262, April.
    4. McKenzie, David, 2012. "Beyond baseline and follow-up: The case for more T in experiments," Journal of Development Economics, Elsevier, vol. 99(2), pages 210-221.
    5. Beegle, Kathleen & De Weerdt, Joachim & Friedman, Jed & Gibson, John, 2012. "Methods of household consumption measurement through surveys: Experimental results from Tanzania," Journal of Development Economics, Elsevier, vol. 98(1), pages 3-18.
    6. 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.
    7. Behrman, Jere R. & Wolfe, Barbara L., 1984. "More evidence on nutrition demand : Income seems overrated and women's schooling underemphasized," Journal of Development Economics, Elsevier, vol. 14(1), pages 105-128.
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    1. Mach, Radomír & Weinzettel, Jan & Ščasný, Milan, 2018. "Environmental Impact of Consumption by Czech Households: Hybrid Input–Output Analysis Linked to Household Consumption Data," Ecological Economics, Elsevier, vol. 149(C), pages 62-73.
    2. Farr, Marina & Stoeckl, Natalie & Alam Beg, Rabiul, 2014. "The non-consumptive (tourism) ‘value’ of marine species in the Northern section of the Great Barrier Reef," Marine Policy, Elsevier, vol. 43(C), pages 89-103.
    3. Friedman, Jed & Beegle, Kathleen & De Weerdt, Joachim & Gibson, John, 2017. "Decomposing response error in food consumption measurement: Implications for survey design from a randomized survey experiment in Tanzania," Food Policy, Elsevier, vol. 72(C), pages 94-111.
    4. Florian Wendelspiess Ch�vez Ju�rez, 2015. "Measuring Inequality of Opportunity with Latent Variables," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 16(1), pages 106-121, February.
    5. John Gibson, 2016. "Measuring Chronic Hunger from Diet Snapshots: Why 'Bottom up' Survey Counts and 'Top down' FAO Estimates Will Never Meet," Working Papers in Economics 16/07, University of Waikato.

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    More about this item

    Keywords

    income; measurement error; nutrition;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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