Consumer Demand and the Role of Labour Supply and Durables
AbstractIn this article I test empirically whether intratemporal preferences between (1) nondurables and labour supply and (2) nondurables and housing are separable. In doing so, careful attention is paid to the potential endogeneity of the total budget, labour supply and housing. For housing I offer two separate solutions to the problem of correlation between house size, proxied by number of rooms, and unobserved heterogeneity: first, instrument with a children's sex composition dummy and second, select on households residing in public housing. The results strongly reject separability between nondurables and labour supply. For nondurables and housing the results are more mixed. Copyright 2006 Royal Economic Society.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 116 (2006)
Issue (Month): 510 (03)
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- John Ermisch & Chiara Pronzato, 2008.
"Intra-Household Allocation of Resources: Inferences from Non-resident Fathers' Child Support Payments,"
Royal Economic Society, vol. 118(527), pages 347-362, 03.
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- Ermisch, John & Pronzato, Chiara D., 2006. "Intra-Household Allocation of Resources: Inferences from Non-Resident Fathers’ Child Support Payments," IZA Discussion Papers 2498, Institute for the Study of Labor (IZA).
- Laura Blow & Valérie Lechene & Peter Levell, 2012. "Using the CE to Model Household Demand," NBER Chapters, in: Improving the Measurement of Consumer Expenditures National Bureau of Economic Research, Inc.
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