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Does survey recall error explain the Deaton–Paxson puzzle?

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  • Brzozowski, Matthew
  • Crossley, Thomas F.
  • Winter, Joachim K.

Abstract

Using recall and diary food expenditure data from Canada, we compare estimates of the household size elasticity of per capita food expenditure. In contrast to Gibson (2002), we find negative elasticities in both recall and diary data. This in turn means we find evidence of the “Deaton–Paxson puzzle” in both diary and recall data. Recall error cannot be the sole explanation of the puzzle.

Suggested Citation

  • Brzozowski, Matthew & Crossley, Thomas F. & Winter, Joachim K., 2017. "Does survey recall error explain the Deaton–Paxson puzzle?," Economics Letters, Elsevier, vol. 158(C), pages 18-20.
    • Handle: RePEc:eee:ecolet:v:158:y:2017:i:c:p:18-20
    DOI: 10.1016/j.econlet.2017.06.020
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    References listed on IDEAS

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    1. Matthew Brzozowski & Thomas F. Crossley, 2011. "Viewpoint: Measuring the well‐being of the poor with income or consumption: a Canadian perspective," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(1), pages 88-106, February.
    2. Angus Deaton, 2010. "Understanding the Mechanisms of Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 24(3), pages 3-16, Summer.
    3. Angus Deaton & Christina Paxson, 1998. "Economies of Scale, Household Size, and the Demand for Food," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 897-930, October.
    4. repec:pri:rpdevs:deaton_understanding_mechanisms_of_economic_development_with_abstract_apr is not listed on IDEAS
    5. John Gibson, 2002. "Why Does the Engel Method Work? Food Demand, Economies of Size and Household Survey Methods," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 64(4), pages 341-359, September.
    6. repec:bla:obuest:v:64:y:2002:i:4:p:341-59 is not listed on IDEAS
    7. John Gibson & Bonggeun Kim, 2007. "Measurement Error in Recall Surveys and the Relationship between Household Size and Food Demand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 473-489.
    8. Naeem Ahmed & Matthew Brzozowski & Thomas Crossley, 2006. "Measurement errors in recall food consumption data," IFS Working Papers W06/21, Institute for Fiscal Studies.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Thomas F. Crossley & Yuqian Lu, 2018. "Returns to scale in food preparation and the Deaton–Paxson puzzle," Review of Economics of the Household, Springer, vol. 16(1), pages 5-19, March.
    2. Echeverría, Lucía & Molina, José Alberto, 2022. "Exploring household heterogeneities of the Deaton-Paxson puzzle: Evidence for Argentina," Nülan. Deposited Documents 3622, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.

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    More about this item

    Keywords

    Household economics; Economies of scale; Consumer demand;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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