Testing Household Economies of Scale in Uzbekistan

Authors

  • Ziyodullo PARPIEV Westminster International University
  • Kakhramon YUSUPOV Westminster International University

Keywords:

Household economies of scale, Engel curve, Tobit

Abstract

This paper investigates empirically the relationship between household economies of scale and consumption in Uzbekistan. Particular attention is paid to the so-called “zero consumption problem” and Tobit estimator is utilized to deal with the problem. Using the household survey dataset made available recently, we test presence (or lack) of household economies of scale in seven different consumption categories (food, meals out, clothing, education, health, transportation and shelter). We find evidence of strong and positive household economies of scale in consumption of meals out, clothing, education, health, transportation and shelter, while consumption of food fails to indicate this pattern. We also estimate food Engel curve using non-parametric kernel estimates and fail to find the existence of household economies of scale through food consumption data.

Published

18-04-2019

How to Cite

PARPIEV, Z., & YUSUPOV, K. (2019). Testing Household Economies of Scale in Uzbekistan. Eurasian Journal of Business and Economics, 4(7), 25-51. Retrieved from https://ejbe.org/index.php/EJBE/article/view/48

Issue

Section

Articles