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Household expenditure on food at home in Malaysia

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  • Tey, (John) Yeong-Sheng

Abstract

“Engel’s law” explains that the share of household expenditure on food typically falls as income and expenditure increase. The objectives of this study are to investigate the food expenditure patterns of different income groups and the relationships between household characteristics and expenditure patterns. Household Expenditure Survey 2004/2005 data from Department of Statistics was used to analyze the food expenditure pattern of households. An expenditure model was developed and the coefficients are estimated by Working-Leser model. The estimated results are clearly a reflection of “Engel’s law”, resulting in higher income elasticity for lower income groups than higher income groups. The share of food expenditure increases with increase in income. The results also indicate that household size, races, age of household head, level of income, and gender are the main variables related to household food expenditure pattern.

Suggested Citation

  • Tey, (John) Yeong-Sheng, 2008. "Household expenditure on food at home in Malaysia," MPRA Paper 15031, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:15031
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    References listed on IDEAS

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    Cited by:

    1. Manisha Chakrabarty & Subhankar Mukherjee, 2022. "Financial Inclusion and Household Welfare: An Entropy-Based Consumption Diversification Approach," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(3), pages 1486-1521, June.

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    More about this item

    Keywords

    Food expenditure pattern; Working-Leser; Engel’s Law; income; income elasticity;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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