The study examines the nature of food Engel curve using total expenditure as a proxy for
income. The Working-leser and the quadratic specifications of Engel’s model are employed and
modified to include certain demographic characteristics of households. The study uses secondary
data from the last four rounds of the Ghana Living Standard Survey.
Results from the study show a significant relationship between budget share of food and total
expenditure. The budget share of food also varies across the country. The estimates for the last
four rounds of the Ghana Living Standard Survey shows that households living in rural areas
have larger budget share of food than those in urban areas. Using income as instrument in
correcting the problem of endogeneity, in addition to other instruments, the estimates from the
augmented regressions suggest that income is significant in examining the budget share of food
with respect to total expenditure.
Using the goodness of fit, the quadratic specification has a better fit for the last four rounds of
the Ghana Living Standard Survey data than the Working-leser specification. The WorkingLeser model estimates give larger elasticities of food with respect to total expenditure than the
quadratic model. The estimates for elasticity of food with respect to total expenditure for all four
rounds were less than unity for both the Working-Leser and quadratic models.
Edu, F (2021). Estimating Engel Curve For Food In Ghana (1991-2013). Afribary.com: Retrieved May 10, 2021, from https://afribary.com/works/estimating-engel-curve-for-food-in-ghana-1991-2013
Frontiers, Edu. "Estimating Engel Curve For Food In Ghana (1991-2013)" Afribary.com. Afribary.com, 27 Apr. 2021, https://afribary.com/works/estimating-engel-curve-for-food-in-ghana-1991-2013 . Accessed 10 May. 2021.
Frontiers, Edu. "Estimating Engel Curve For Food In Ghana (1991-2013)". Afribary.com, Afribary.com, 27 Apr. 2021. Web. 10 May. 2021. < https://afribary.com/works/estimating-engel-curve-for-food-in-ghana-1991-2013 >.
Frontiers, Edu. "Estimating Engel Curve For Food In Ghana (1991-2013)" Afribary.com (2021). Accessed May 10, 2021. https://afribary.com/works/estimating-engel-curve-for-food-in-ghana-1991-2013