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Household Economies of Scale in Consumption: Theory and Evidence

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Author Info
Nelson, Julie A

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Abstract

Household economies of scale (arising from the existence of househo ld public goods, increasing returns in household production, and/or bulk discounts) are incorporated into a utility-theoretic model of household demands. Individuals are assumed to be identical and symmetrically treated within households. Economies of scale parameters for five goods are estimated using the quadratic expenditu re system and data from the U.S. Consumer Expenditure Survey on expenditures by all-adult households. Results suggest the existence o f significant economies of scale in the consumption of all of the included goods, with economies being especially pronounced in the consumption of shelter. Copyright 1988 by The Econometric Society.

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Publisher Info
Article provided by Econometric Society in its journal Econometrica.

Volume (Year): 56 (1988)
Issue (Month): 6 (November)
Pages: 1301-14
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Handle: RePEc:ecm:emetrp:v:56:y:1988:i:6:p:1301-14

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  1. Olivier Donni, 2006. "The Intrahousehold Allocation of Private and Public Consumption: Theory and Evidence from U.S. Data," IZA Discussion Papers 2137, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Jesus Fernandez-Villaverde & Dirk Krueger, 2002. "Consumption over the Life Cycle: Facts from Consumer Expenditure Survey Data," NBER Working Papers 9382, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Sunil Kumar & Renuka Mahadevan, 2008. "Construction of An Adult Equivalence Index to Measure Intra-household Inequality and Poverty: Case Study," Discussion Papers Series 363, School of Economics, University of Queensland, Australia. [Downloadable!]
  4. Colin Black & David C. Broadstock & Alan Collins & Lester C. Hunt, 2006. "Food Superstores, Food Deserts and Traffic Generation in the UK: A Semi-Parametric Regression Approach," Surrey Energy Economics Centre (SEEC), Department of Economics Discussion Papers (SEEDS) 112, Surrey Energy Economics Centre (SEEC), Department of Economics, University of Surrey. [Downloadable!]
  5. J.V. Meenakshi & Ranjan Ray, 2000. "Impact of Household Size and Family Composition on Poverty in Rural India," ASARC Working Papers 2000-02, Australian National University, Australia South Asia Research Centre. [Downloadable!]
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  6. Jesus Fernandez-Villaverde & Dirk Krueger, 2002. "Consumption over the Life Cycle: Some Facts from Consumer Expenditure Survey Data," Centro de Alti­simos Estudios Ri­os Pe©rez(CAERP) 7, Centro de Altisimos Estudios Rios Perez (CAERP). [Downloadable!]
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  7. Angus Deaton & Christina Paxson, 1995. "Measuring Poverty Among the Elderly," NBER Working Papers 5296, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Trevon D. Logan, 2008. "Are Engel Curve Estimates of CPI Bias Biased?," NBER Working Papers 13870, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Martin Browning & Pierre-André Chiappori & Arthur Lewbel, . "Estimating Consumption Economies of Scale, Adult Equivalence Scales, and Household Bargaining Power," CAM Working Papers 2003-12, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics, revised Dec 2003. [Downloadable!]
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  10. Olivier Donni, 2004. "A Collective Model of Household Behavior with Private and Public Goods: Theory and Some Evidence from U.S. Data," Cahiers de recherche 0402, CIRPEE. [Downloadable!]
  11. Trevon D. Logan, 2008. "Economies of Scale in the Household: Puzzles and Patterns from the American Past," NBER Working Papers 13869, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Bruce Bradbury, 1995. "Household Semi-Public Goods and the Estimation of Consumer Equivalence Scales: Some First Steps," Microeconomics 9508001, EconWPA. [Downloadable!]
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  13. Bruce Bradbury, 2004. "The Price, Cost, Consumption and Value of Children," Labor and Demography 0402003, EconWPA. [Downloadable!]
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  14. Olivier Donni, 2004. "A Collective Model of Household Behavior with Private and Public Goods: Theory and Evidence from US Data," Econometric Society 2004 Latin American Meetings 26, Econometric Society. [Downloadable!]
  15. Bruce Bradbury, 1996. "Household Income Sharing, Joint Consumption and the Expenditure Patterns of Australian Retired Couples and Single People," Discussion Papers 0066, University of New South Wales, Social Policy Research Centre. [Downloadable!]
  16. Olivier Donni, 2004. "A Collective Model of Household Behavior with Private Public Goods: Theory and Some Evidence from U.S. Data," DELTA Working Papers 2004-04, DELTA (Ecole normale supérieure). [Downloadable!]
  17. Ingrid Woolard & Murray Leibbrandt, 1999. "Measuring Poverty in South Africa," Working Papers 9689, University of Cape Town, Development Policy Research Unit. [Downloadable!]
  18. Arthur Lewbel, 2002. "Calculating Compensation in Cases of Wrongful Death," Boston College Working Papers in Economics 523, Boston College Department of Economics, revised 07 Jun 2002. [Downloadable!]
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