Unformatted text preview: OLS estimates may be biased as food consumption data may be subject to random error that feeds into the construction of both household ex-penditure and calorie availability. This form of measurement error may be corrected for using income as an instrument for expenditure if this is available and collected independently of expenditure, for e.g., non-food expenditure. (Deaton, 1997) Take Home Message Calorie availability: strongly associated with household economic welfare. Subramaniam and Deaton (1996) observe high calorie elasticities of around 0.55 for the poor in rural Maharashtra which is well outside the revisionist range. ²indings clearly refute the extreme view that, “increases in income . .. will not result in substantial improvements in nutrient intakes?” (Behrman and Deolalikar ,1987, page 505) Development Economics, LSE Summer School 2007 204...
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