Using quadratic Engel curves with measurement errors, we identify the proportion of urban households in Ethiopia for whom food exhibits the characteristics of a luxury commodity. The threshold welfare level beyond which food ceases to be a luxury is found to lie between the 35th and 47th...

The paper investigates whether returns to schooling in Ethiopia vary according to the ability of individuals. To do so it adopts an instrumental variables quantile regression framework that allows for both endogeneity of schooling resulting from unmeasured ability, and possible heterogeneity in...

This paper examines the importance of accounting for measurement error in total expenditure in the estimation of Engel curves, based on the 1994 Ethiopian Urban Household Survey. Using <link rid="b19">Lewbel's ["Review of Economics and Statistics" (1996</link>), Vol. 78, pp. 718-725] estimator for demand models with...