Analysis of household expenditures
Angus Case Deaton
Abstract
Angus Case Deaton
Abstract
A household expenditure survey is the tool through which material welfare is measured. Its results show that levels of living vary among individuals and groups in the economy. Therefore, the wealth of data from such surveys provides an information base which is an essential prerequisite for the evaluation of actual or proposed policies. This enhances the understanding of how the economy functions, allowing the evolution of better policies for progress and development. Accordingly, this report reviews three analytical issues : a) the estimation of Engel curves; b) the calculation of measures of the costs of maintaining children and c) the calculation of price indices.
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A household expenditure survey is the tool through which material welfare is measured. Its results show that levels of living vary among individuals and groups in the economy. Therefore, the wealth of data from such surveys provides an information base which is an essential prerequisite for the evaluation of actual or proposed policies. This enhances the understanding of how the economy functions, allowing the evolution of better policies for progress and development. Accordingly, this report reviews three analytical issues : a) the estimation of Engel curves; b) the calculation of measures of the costs of maintaining children and c) the calculation of price indices.
Key concepts: Engel curve, Welfare, Economics, Estimation, Econometrics, Public economics, Price index, Market economy