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Functional forms of household expenditure patterns in the United States
Author(s) -
ABDELGHANY MOHAMED,
SCHWENK F. N.
Publication year - 1993
Publication title -
journal of consumer studies and home economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 0309-3891
DOI - 10.1111/j.1470-6431.1993.tb00176.x
Subject(s) - engel curve , consumer expenditure survey , economics , consumer expenditure , instrumental variable , aggregate expenditure , econometrics , demographic economics , public economics
Engel curve analyses of six major categories of expenditures are presented. Data for U.S. consumer units are from the 1989 Consumer Expenditure Survey . Six different functional forms for each of the six expenditure categories were compared and the form with the best fit between permanent income, as derived from an instrumental variable approach, and expenditure was selected for each expenditure category. Regressions of each expenditure with permanent income and selected household characteristics are discussed.