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Household Commodity Demand and Demographics in the Netherlands: A Micro-Economic Analysis
Kalwij,A.S. Alessie,R.J.M. Fontein,P.F.
Kalwij,A.S.
Alessie,R.J.M.
Fontein,P.F.
Abstract
We investigate the effects of demographics, household expenditure and female employment on the allocation of household expenditure to consumer goods. For this purpose we estimate an Almost Ideal Demand System based on Dutch micro data. We find that interactions between household expenditure and demographics are of significant importance in explaining the allocation to consumer goods. As a consequence, consumer goods such as housing and clothing change with demographic characteristics from luxuries to necessities. Furthermore, this implies that budget and price-elasticities cannot be consistently estimated from aggregated data and that equivalence scales are not identified from budget survey data alone. We reject weak separability of consumer goods from female employment. A couple with an employed spouse has a smaller budget share for housing and personal care and a larger budget share for education, recreation & transport and clothing compared to a couple with a non-employed spouse.
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Pagination: 28
Date
1997
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Publisher
Econometrics
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76.pdf
Adobe PDF, 487.99 KB
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Keywords
demand systems, consumption, demographics, C30 - General, D12 - Consumer Economics: Empirical Analysis
Citation
Kalwij, A S, Alessie, R J M & Fontein, P F 1997 'Household Commodity Demand and Demographics in the Netherlands : A Micro-Economic Analysis' CentER Discussion Paper, vol. 1997-76, Econometrics, Tilburg.
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info:eu-repo/semantics/restrictedAccess