Economics at your fingertips  

An Engel Curve for Variety

Nicholas Li ()

The Review of Economics and Statistics, 2021, vol. 103, issue 1, 72-87

Abstract: 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.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Access to PDF is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Pierre Azoulay, Olivier Coibion, Will Dobbie, Raymond Fisman, Benjamin R. Handel, Brian A. Jacob, Kareen Rozen, Xiaoxia Shi, Tavneet Suri and Yi Xu

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by Ann Olson ().

Page updated 2022-10-29
Handle: RePEc:tpr:restat:v:103:y:2021:i:1:p:72-87