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Predicting within country household food expenditure variation using international cross-section estimates

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  • Verma, Monika
  • Hertel, Thomas W.
  • Preckel, Paul V.

Abstract

International cross-section demand systems have not been tested on their ability to accurately predict within country consumption expenditures. This paper reports on such a validation exercise for the case of food budget share predictions across expenditure percentiles within Bangladesh.

Suggested Citation

  • Verma, Monika & Hertel, Thomas W. & Preckel, Paul V., 2011. "Predicting within country household food expenditure variation using international cross-section estimates," Economics Letters, Elsevier, vol. 113(3), pages 218-220.
    • Handle: RePEc:eee:ecolet:v:113:y:2011:i:3:p:218-220
    DOI: 10.1016/j.econlet.2011.07.004
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    References listed on IDEAS

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    1. Maros Ivanic & Will Martin, 2008. "Implications of higher global food prices for poverty in low‐income countries1," Agricultural Economics, International Association of Agricultural Economists, vol. 39(s1), pages 405-416, November.
    2. Monika Verma & Thomas W. Hertel & Ernesto Valenzuela, 2011. "Are The Poverty Effects of Trade Policies Invisible?," The World Bank Economic Review, World Bank, vol. 25(2), pages 190-211, May.
    3. Theil, Henri & Finke, Renate, 1984. "A time series analysis of a demand system based on cross-country coefficient estimates," Economics Letters, Elsevier, vol. 15(3-4), pages 245-250.
    4. Thomas W. Hertel & Roman Keeney & Maros Ivanic & L. Alan Winters, 2015. "Why Isn't the Doha Development Agenda more Poverty Friendly?," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 18, pages 375-391, World Scientific Publishing Co. Pte. Ltd..
    5. James A. Levinsohn & Steven T. Berry & Jed Friedman, 2003. "Impacts of the Indonesian Economic Crisis.Price Changes and the Poor," NBER Chapters, in: Managing Currency Crises in Emerging Markets, pages 393-428, National Bureau of Economic Research, Inc.
    6. J. A. L. Cranfield & James S. Eales & Thomas W. Hertel & Paul V. Preckel, 2003. "Model selection when estimating and predicting consumer demands using international, cross section data," Empirical Economics, Springer, vol. 28(2), pages 353-364, April.
    7. Dowrick, Steve & Quiggin, John, 1994. "International Comparisons of Living Standards and Tastes: A Revealed-Preference Analysis," American Economic Review, American Economic Association, vol. 84(1), pages 332-341, March.
    8. Cranfield, John & Preckel, Paul & Hertel, Thomas, 2006. "Poverty Analysis Using an International Cross-Country Demand System," GTAP Working Papers 2211, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    9. Clements, Kenneth W. & Qiang, Ye, 2003. "The Economics of Global Consumption Patterns," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(Supplemen), pages 1-17.
    10. Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
    11. Kenneth W. Clements & Dongling Chen, 2010. "Affluence and Food: A Simple Way to Infer Incomes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 909-926.
    12. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
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    Cited by:

    1. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.

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    More about this item

    Keywords

    International cross-section demand system; Across income spectrum prediction; Household data; AIDADS; Food demand;
    All these keywords.

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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