Engel Curves for Developing Nations: The Case of Africa

Investigation of the relation between household consumption and total income for six African countries: Ghana, Kenya, Malawi, Sudan, Tanzania, and Uganda, using models derived from non-linear functional forms for Engel curves as developed, amongst others, by Houthakker (1957). The objective is twofold; to investigate the reliability of Houthakker’s postulate that in the absence of reliable expenditure patterns data ‘one would not be very far astray by putting the partial elasticity with respect to total expenditure at 0.6 for food, 1.2 for clothing, 0.8 for housing and 1.6 for all other items combined, and to compare expenditure elasticities between the African nations in question. Notes, ref.