Zero Expenditures and Engel Curve Estimation

Timothy Beatty

No 21052, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Zeroes expenditure represent a difficulty in the analysis of household survey data. Zero expenditures are the result of two phenomena: nonconsumption and infrequency of purchase. Distinguishing between these types of zeroes is difficult in the kinds of data of interest to agricultural economists. This paper proposes a novel approach that yields less biased estimates of latent expenditure when the cause of the zeroes is unknown.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Pages: 14
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21052

DOI: 10.22004/ag.econ.21052

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