Household expenditures on necessities and demographic factors: Nonparametric Kernel estimation evidence

Household expenditures on necessities and demographic factors: Nonparametric Kernel estimation evidence This study investigates the relationship between the household expenditures and necessities (food and non-alcoholic beverages, health and education) and households' income, type, size, home ownership status and location. The relationships are estimated based on the Household Budget Surveys of 2008 and 2010 using the nonparametric kernel regression technique. Our analyses suggest a decreasing pattern of income elasticity as income rise. Existence of a factor unrelated to income, such as having a medium size family, living urban, living as a tenant augments the income elasticity estimates. In medium size households, urban households and tenant households the expenditures on necessities are low yet income elasticity figures are high.