Identification and Estimation of Quadratic Food Engel Curves: Evidence from Cameroon
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Date
2023-07
Authors
Wirba, Ebenezer Lemven
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
In this paper we estimate quadratic food Engel curves using data from the 2001,
2007 and 2014 Cameroon household consumption surveys. To address potential
mismeasurement of regressors, we employ the heteroscedasticity-based identification
strategy. Exploratory non-parametric analyses suggest quadratic forms for the food
Engel curves. The regression results in this study confirm these patterns. At lower
spending levels, unit increases in total spending increase the food budget share, while
at levels above the spending thresholds, unit increases in total spending reduce the
food budget share. We also find evidence of major shifts in the quadratic food Engel
curves over time. These findings suggest that reducing taxes on food items would be
more beneficial to poor households.