This paper investigates the relationship between household income and food expenditure in South Africa, testing the validity of Engel's law using a multilevel linear regression model. The study accounts for the impact of district-level factors on household consumption behavior, addressing potential autocorrelation issues. Results confirm Engel's law, indicating a negative relationship between income and food expenditure share, and highlight the importance of considering contextual effects.
Publisher
Humanities and Social Sciences Communications
Published On
Dec 01, 2022
Authors
Author Name
Tags
household income
food expenditure
Engel's law
multilevel linear regression
South Africa
autocorrelation
contextual effects
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