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Economies of scale and food consumption: A reappraisal of the Deaton-Paxson paradox

Author

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  • François Gardes

    (TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Christophe Starzec

    (TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, Institut national de la statistique et des études économiques (INSEE))

Abstract

The paradoxical negative relation between food consumption and the family size analyzed by Deaton and Paxson (1998) is discussed and evaluated on a household consumption panel. This negative relation is confirmed using panel data but weakens considerably when an equivalence scale instead of family size is used and when the change of the family structure over time is taken into account. Moreover, different types of possible estimation biases are discussed and corrected using panel instead of cross section data.

Suggested Citation

  • François Gardes & Christophe Starzec, 2000. "Economies of scale and food consumption: A reappraisal of the Deaton-Paxson paradox," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-03721665, HAL.
    • Handle: RePEc:hal:cesptp:halshs-03721665
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03721665
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. François Gardes & Imen Sayadi & Christophe Starzec, 2015. "The full equivalence scales: an estimation integrating the monetary and time dimensions of households’ expenditures [Les échelles d’équivalence complètes : une estimation intégrant les dimensions m," Post-Print hal-01307097, HAL.
    2. repec:hal:pseose:hal-01307097 is not listed on IDEAS
    3. François Gardes & Imen Sayadi & Christophe Starzec, 2015. "The full equivalence scales: an estimation integrating the monetary and time dimensions of households’ expenditures [Les échelles d’équivalence complètes : une estimation intégrant les dimensions m," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01307097, HAL.
    4. Trevon D. Logan, 2011. "Economies Of Scale In The Household: Puzzles And Patterns From The American Past," Economic Inquiry, Western Economic Association International, vol. 49(4), pages 1008-1028, October.
    5. Perali, Federico, 2008. "The second Engel law: Is it a paradox?," European Economic Review, Elsevier, vol. 52(8), pages 1353-1377, November.
    6. François Gardes & Imen Sayadi & Christophe Starzec, 2015. "The full equivalence scales: an estimation integrating the monetary and time dimensions of households’ expenditures [Les échelles d’équivalence complètes : une estimation intégrant les dimensions m," PSE-Ecole d'économie de Paris (Postprint) hal-01307097, HAL.
    7. Gibson, John, 2003. "Does Measurement Error Explain a Paradox About Household Size and Food Demand? Evidence from Variation in Household Survey Methods," 2003 Annual meeting, July 27-30, Montreal, Canada 22198, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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