An Econometric Analysis of Engel's Curve: The Case of Peasant Households in Northern Tanzania
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Date
2001
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Abstract
A number of studies have explored the empirical relevance of the Engel's law by
using household budget surveys in developed and developing countries. This
article presents an empirical evidence on the applicability of the Engel's law in
Tanzania. The analysis is based on a micro-survey data of peasant households in
Northern Tanzania. Both statistical and econometric analyses demonstrate that
household size and income significantly and positively determine expenditure on
food and some other consumption items, depending on the area of the study. The
age of the household is established to have no significant influence on
expenditure on food, but only on other consumption itemsinvestigated. The study
has also established that education has no significant influence on any
expenditure items of the sampled households
Description
Keywords
Engel's law, Households, Northern Tanzania
Citation
Ndanshau, M.O., 2001. An Econometric Analysis ofEngel's Curve: The Case of Peasant Households in Northern Tanzanial.