Food Expenditure, Food Preparation Time and Household Economies of Scale


Book Description

This paper is concerned with the effect of household size on the allocation of household money and time to food consumption. Recent studies have found that larger families spend less per capita on food, given similar per capita total expenditures, even despite economies in shared goods allows larger households to spend more on food. This paper examines household time inputs and shows that economies of scale in preparing food can explain this result. Larger households can achieve the same level of consumption at lower expenditure by substituting cheaper production time for more expensive ingredients. Using household expenditure and time-use survey data from Russia and the United States, I estimate the magnitude of household economies in food expenditures and food-related time. Economies in food preparation time are substantial in Russia and very small in the U.S. The cross-country differences are explained in terms of differences in family structure, income level, intra-household specialization of labor, and the availability of substitutes for home-prepared meals. There is evidence that the time intensity of meals increases with household size, but the quality of meals is unaffected by changes in household size.







Poverty, Food Consumption, and Economic Development


Book Description

This book investigates the relationships between economies of scale in food consumption and a number of socio-economic and demographic characteristics of households and household behavioural choices since food is the major share of household expenditure for poor households. The characteristics considered comprise household size, location, income, and gender of the head of household while the behavioural choices considered comprise the decision to consume home-grown food and the decision to adopt domestic technology to aid food preparation and consumption. The book proposes two theoretical models to rationalize the role of the consumption of home-grown food and the adoption of domestic technology in enhancing economies of scale in food consumption. Econometric models are also used to empirically test the validity of the two theoretical models while adjusted poverty estimations are derived numerically using the estimated equivalence scales. Although data used in applying these techniques are based on four Household Income and Expenditure Surveys conducted by the Department of Census and Statistics (DCS) in Sri Lanka, the methodology can be used for similar analysis in relation to any other country.




Economies of Scale in the Household


Book Description

Household economies of scale arise when households with multiple members share public goods, making larger households better off at lower per capita expenditures. While estimates of household economies of scale are critical for measuring income and living standards, we do not know how these scale economies change over time. I use American household expenditure surveys to produce the first comparable historical estimates of household scale economies. I find that scale economies changed significantly from 1888 to 1935 for all expenditure categories considered (food, clothing, entertainment, and housing), but not all trends in scale economies are consistent with theoretical predictions. I use these historical estimates of household scale economies to resolve several theoretical and empirical puzzles in the literature. I find that existing explanations for puzzles in the household economies of scale literature do not hold in the past. As such, our notions about household economies of scale must be reassessed in light of this historical evidence.










Public Economics and the Household


Book Description

Economic models in much of the public economics literature have been slow to reflect the significant changes towards double-income households throughout the developed world. This graduate-level text develops a more sophisticated approach to household economics, one that allows for multiple-income earners and shared decision-making. This approach is used to present a fundamentally new view of consumption. It then applies this to an analysis of tax systems, combining theoretical analysis of optimal taxation and tax reform with careful empirical study of the characteristics of income tax systems in four different countries: Australia, Germany, the UK and the USA. The book is particularly concerned with analysing, both theoretically and empirically, the impact of taxation on female labour supply, and identifying its effects on work incentives and fairness of income distribution. All this adds up to a fascinating new approach to the economics of household for researchers in both public and private sectors.




U.S. Demand for Food


Book Description