ASSESSING THE HEALTH, EDUCATION, FOOD AND NONE FOOD EXPENDITURE IN NIGERIA: EVIDENCE FROM ENGEL CURVE ANALYSIS OF HOUSEHOLD'S EXPENDITURE IN NIGERIA

The study estimates the Working-Leser model using Engel Curve approach. The result show that; food expenditure has the largest share of household expenditure in Nigeria while household expenditure on health, education and non-food expenditure have the lowest share of the total household expenditure in Nigeria.

ASSESSING THE HEALTH, EDUCATION, FOOD AND NONE FOOD EXPENDITURE IN NIGERIA: EVIDENCE FROM ENGEL CURVE ANALYSIS OF HOUSEHOLD'S EXPENDITURE IN NIGERIA

The study estimates the Working-Leser model using Engel Curve approach. The result show that; food expenditure has the largest share of household expenditure in Nigeria while household expenditure on health, education and non-food expenditure have the lowest share of the total household expenditure in Nigeria.

An Engel Curve for Variety

I examine the source and welfare implications of differences in household consumption diversity. I document the existence of a positive correlation between household variety and expenditure to motivate a simple framework where households purchase more varieties to counteract diminishing returns to quantity but face location-specific costs of accessing variety. Estimating the model with Indian household data, I find that the increase in dietary diversity between 1983 and 2009 was mostly due to lower costs of accessing variety, which resulted in large welfare gains. Urban households also benefit from a lower cost of accessing varieties than rural households.

Engel curve, farmer welfare and food consumption in 40 years of rural China

Purpose The purpose of this paper is to review the theoretical background, methodological extensions, and empirical applications of the Engel curve, which is applied to the research of the change in farmers’ welfare and food demand in China after the economic reform in 1978, compared with the statistics of income and food consumption. Design/methodology/approach This paper mainly uses the traditional method of Engel curve, which is compared with income growth and food consumption, to study farmers’ welfare improvement in rural China. Findings The Engel coefficients identify three different stages for farmers’ welfare change after 1978. The first stage is the period between 1978 and 1988, in which farmers’ welfare has been continuously enhanced due to the institutional bonus of the 1978 economic reform and increased government purchase price of agricultural products. The second stage is the period between 1989 and 1995, in which farmers’ welfare has been slightly deteriorated mainly due to the end of institutional reform bonus, suppressed food prices, relative high inflation, and instable political situation. The third stage is the period after 1995, in which farmers’ welfare returns to a growing path, as the dual price system was abolished, the transition from a planned economy to a market economy had been completed, and the government carried out protective policies for agriculture and started to heavily subsidize agriculture. The Engel coefficient still remained at a very high level at 0.59 in 1995, but it continuously decreased to 0.33 in 2015. The welfare enhancement for farmers mainly results from deepened market-oriented reform, protective policies for agriculture, and prevalent off-farm employment. The Engel coefficient is also linked to food demand elasticities. Along with the decreasing Engel coefficient in the past 40 years, income elasticities also continuously decrease from 0.55 in 1978 to 0.08 in 2015. Food demand is very inelastic now, and any further increase in income will not substantially increase food demand any more. Research limitations/implications Inequality has not been analyzed. Originality/value This paper reviews the methodological advantages of the Engel curves, and uses it to identify different stages of welfare change and estimate income elasticities of food demand for farmers in China after the 1978 economic reform.

Gender bias in household education expenditure: the case of West Bengal

Purpose This paper aims to detect gender bias in education expenditure on “students”, who are children and young adults, in a household in the rural and the urban sectors of West Bengal. Outlay equivalent ratios have been calculated using the Engel curve approach, where the budget share function is log quadratic in income, to identify items relating exclusively to education of school/college going students. Heckman’s (1979) two-step procedure is used for estimation to address selection bias The 68th round (July 2011 to June 2012) household level consumption expenditure survey data of the National Sample Survey Organisation have been used for the analysis. Design/methodology/approach Engel curve approach is used to capture parental preference for student’s welfare and to find the existence of male student favouritism in the field of education. In case of exclusive adult goods, the addition of a student will reduce the resource allocated for adult goods leading to negative income effect. If a household favours males over females, then that household is likely to sacrifice more for a male student’s education than that for a female student. To address selection bias, Heckman’s two-step procedure has been used. Findings The authors find that not all education items relate exclusively to students of a household. Expenditure on books is not exclusively for students, whereas other educational items, such as stationary and photocopy charges, tuition fees and private coaching fees, are found to be students’ items only. Transport cost is found to be an adult good. Further, we find evidence of pro male bias in expenditure on educational items, and the extent of gender bias is more in the urban sectors compared to the rural sectors in West Bengal. Originality/value The objective of this paper is to identify the educational items exclusively for “students” and to test the difference in the allocation of resources in education, with respect to these items, between a male student and a female student for both sectors in West Bengal, using the outlay equivalent ratios.