EFFECT OF FAMILY SIZE ON ECONOMY OF SCALE IN PERSONAL FOOD CONSUMPTION EXPANSION IN EUROPEAN AND RULER IN EGYPT | ||||
| Journal of Agricultural Economics and Social Sciences | ||||
| Article 3, Volume 27, Issue 4, April 2002, Page 2235-2249 PDF (5.24 MB) | ||||
| Document Type: Original Article | ||||
| DOI: 10.21608/jaess.2002.254147 | ||||
 View on SCiNiTO | ||||
| Author | ||||
| M. A. Abd EI-Aziz, | ||||
| Agric. Economy Department, National Research Center | ||||
| Abstract | ||||
| The study intended to investigate and examine the existence and the effect of economy of scale in household food expenditure in Egypt upon expenditure elasticity among several scales of family sizes. Also, it intended to examine the difference in the estimated expenditure elasticity for the specific scale between rural and urban areas. Data from the family Budget survey of 1999/2000 were used. The per capita total annual expenditure and per capita expenditure on 10 major food groups were calculated and used for family size ( one person, 2-3, 4-6 and 7 or more persons).The relatively importance of economy of scale increased when move from the smallest to the biggest family size. Expenditure elasticity's were estimated for Grains, Legumes, Vegetables .Fruits , Meat & Poultry, Fish, Eggs, Milk and it's products, Oils and Sugar and it's products respectively for each family size in both urban and rural The first hypothesis were stated that there no differences among the elasticity for each food group for each family size in both urban and rural. The second hypothesis were stated that there no differences among the elasticity for each food group among urban and rural. Generally, the elasticity increased in rural comparison with urban for all food groups except Grains and Sugar. Chow's test was showed that possibility of used one elasticity for each food group for each family size in both urban and rural except Fish, and Milk in only rural (The first hypothesis ). Dummy variables (0, 1 ) was used with a regression model and showed the differences among the elasticity slope for each food group for each family size (The second hypothesis ). Economy of scale was obvious from examined data and implication of it's effect on expenditure elasticity's were discussed. | ||||
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