Household Composition and Brazilian Food Purchases: An Expenditure System Approach

The use of household level data for food demand analysis requires the researcher to address issues such as purchase censoring and the impacts of household age/gender composition on such demand. This analysis adopts an estimation approach to modeling censored food expenditures. The major methodological contribution of this analysis is our incorporation of an endogenous equivalence scale measure within the expenditure system. Our empirical application is concerned with Brazilian household food expenditures. We use the estimated adult equivalence scales to evaluate a measure of household welfare represented by per-adult equivalent food expenditures. We find a significant shift of the distribution of per capita food distributions when comparing member count versus adult equivalent-based per capita distributions.