The classic Working-Leser household Engel curve is unpacked to reveal individual budget allocations across commodities as a function of both individual and household total spending. Two main findings emerge on calibrating our model to an unusual sub-household dataset for Senegal. First, for all...

The Japanese Consumer Price Index (CPI) is considered to be upwardly biased.This paper estimated the Engel curve based on National Survey of Family Incomeand Expenditure data to measure the bias. The estimated bias for the period 1989to 2004 was 0.53 percentage points per annum. Correcting the...

In this study, we investigate an optimal consumption and investment problem of an economic agent who faces a welfare constraint; the agent does not accept her expected utility (continuation value) falls below a certain fixed level regardless of the time and state. This optimization problem...