Household expenditure on food at home in Malaysia Report as inadecuate

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-Engel’s law- explains that the share of household expenditure on food typically falls as income and expenditure increase. The objectives of this study are to investigate the food expenditure patterns of different income groups and the relationships between household characteristics and expenditure patterns. Household Expenditure Survey 2004-2005 data from Department of Statistics was used to analyze the food expenditure pattern of households. An expenditure model was developed and the coefficients are estimated by Working-Leser model. The estimated results are clearly a reflection of -Engel’s law-, resulting in higher income elasticity for lower income groups than higher income groups. The share of food expenditure increases with increase in income. The results also indicate that household size, races, age of household head, level of income, and gender are the main variables related to household food expenditure pattern.

Item Type: MPRA Paper -

Original Title: Household expenditure on food at home in Malaysia-

Language: English-

Keywords: Food expenditure pattern, Working-Leser, Engel’s Law, income, income elasticity-

Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics > D12 - Consumer Economics: Empirical Analysis-

Author: Tey, John Yeong-Sheng


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