Sankhya: The Indian Journal of Statistics

1998, Volume 60, Series B, Pt. 2, 349--376

A NONPARAMETRIC EXPLORATORY ANALYSIS OF THE FORM OF ENGEL CURVES AND RANK OF THE DEMAND SYSTEM - THE CASE OF RURAL MAHARASHTRA

By

AMITA MAJUMDER and MANISHA CHAKRABARTY Indian Statistical Institute, Calcutta

SUMMARY. In this paper nonparametric Kernel smoothing technique is used to determine the functional form of the engel curves of some selected commodities separately for household groups with different household occupations, social classes and household compositions. The performances of these are compared with those of some popular parametric engel curves using the NSS 38th round household level data of rural Maharashtra. The rank of the demand system consisting of these commodities is determined using the rank test of Lewbel (1991) and Gill and Lewbel(1992) and the likelihood ratio test.

AMS (1991) subject classification.62G07, 62P20.

Key words and phrases. Kernel regression, engel curves, rank test.

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