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Functional form of engel curves for foodstuffs
Affiliation:1. Department of Health Statistics, Norwegian Institute of Public Health, Oslo, Norway;2. Department of Health Management and Health Economics, University of Oslo, Oslo, Norway;1. Institute of Cotton Research of the Chinese Academy of Agricultural Sciences, State Key Laboratory of Cotton Biology, Anyang, Henan 455000, China;2. College of Agronomy, Agricultural University of Hebei/Hebei Key Laboratory of Crop Growth Regulation, Baoding 071001, China;3. College of Agronomy and Biotechnology, China Agricultural University, Key Laboratory of Farming System, Ministry of Agriculture, Beijing 100193, China;1. Department of Social Policy and Centre for Economic Performance, London School of Economics, Houghton Street, WC2A 2AE London, UK;2. Research Institute of Industrial Economics, Stockholm, Sweden
Abstract:Employing individual household expenditure data for six foodstuffs we test five three-parameter and four two-parameter Engel curves against a more general form. All two-parameter functions must be rejected, including Working's function; it appears that a transformation of the budget share is in order to capture the observed curvature.
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