| We estimated a system of Engel functions for two survey periods, 1999/2000 and 2004/2005, to quantify the impact of changes of income on household expenditure behavior and to investigate how expenditure responsiveness changes with income. We found that rural households have a higher expenditure share for food categories but a lower share for non-food categories compared to urban households. The expenditure share did not change so much between the two survey periods, with only a slight decline in the share of cereals-bread and the non-food category and an increase in the meat-fish-dairy category. All estimates have a good fit, and the total expenditure explanatory variable is significant in all equations. In general, households with lower incomes are... |
