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The paper deals with the dependence of the share of households’ food expenditure on the total expenditure and the household’s size. This problem is important in applied welfare economics. According to the Engel’s law, the poorer household, the greater proportion of its total expenditure is devoted to the food consumption. In the study, the Working-Leser model was applied to Polish households microeconomic data from 2000, 2005 and 2009.
This study explores the determinants of food expenditures in northern Ghana’s rural households, using a survey data collected in 2010 in the vicinity of Tamale, the capital of the Northern Region. Three estimation methods (OLS, OLS with robust error, and WLS) are used in empirical models to address the possible heteroscedasticity. Models indicate that socio-demographic factors such as income, owning a tractor, age, and household composition are important factors in determining food expenditure. Similarly, farm features such as cultivation of staple or cash crops, the field size of groundnuts, as well as buying dry goods in bulk are also found to be major determinants. Results provide useful information for both private and public sector decision makers, while supplying ample evidence of the importance of estimation method selection to generate most accurate quantified effects of individual explanatory variables on food expenditure.
Utilizing the results of the Household budget surveys covering the period of August 1989 — December 1990 and referring to the employees households the effect of the „marketisation" of food economy on the expenditure on food and food consumption was examined. It was shown that „marketisation", which began on August 1 1989 resulted in a dramatic increase in the expenditure on food in the households of employees. The expenditure was growing both in absolute and relative terms leading to an increase in the proportion of food expenditure in total expenditure. Although the of employees households were paying more and more for food they were at the same time forced to decrease its consumption, which resulted in a significant reduction in the energy and nutrient content of the household diet.
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