Economies of scale and food consumption: a reappraisal of the Deaton-Paxson paradox

François Gardes and Christophe Starzec
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François Gardes: TEAM - Université Paris 1
Christophe Starzec: TEAM - Université Paris 1, CNRS, INSEE

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: The paradoxical negative relation between food consumption and the family size analyzed by Deaton and Paxson (1998) is discussed and evaluated on a household consumption panel. This negative relation is confirmed using panel data but weakens considerably when an equivalence scale instead of family size is used and when the change of the family structure over time is taken into account. Moreover, different types of possible estimation biases are discussed and corrected using panel instead of cross section data

Keywords: Food consumption; economies of scale; equivalence scales; panel and cross-section estimates (search for similar items in EconPapers)
JEL-codes: C21 C23 C52 D12 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2000-01
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Persistent link: https://EconPapers.repec.org/RePEc:mse:wpsorb:bla00008

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