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Interdependent Preferences: An Econometric Analysis

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Author Info
Kapteyn, Arie, et al
Abstract

The theoretical model of Gaertner (1974) and Pollak (1976) for the interdependence of preferences in the Linear Expenditure System is estimated for a cross-section of households. The interdependence of consumption of different households has implications for the stochastic structure of the model and for the identifiability of its parameters. Both aspects are dealt with. The empirical results indicate a significant role played by the interdependence of preferences One of its implications is that predictions of the effects of changes in a household's exogenous variables differ according to whether the exogenous variable only changes for this household or for all households jointly. Coauthors are Sara van de Geer, Huib van de Stadt, and Tom Wansbeek.

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File URL: http://qed.econ.queensu.ca:80/jae/1997-v12.6/
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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 12 (1997)
Issue (Month): 6 (Nov.-Dec.)
Pages: 665-86
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Handle: RePEc:jae:japmet:v:12:y:1997:i:6:p:665-86

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  2. Alessie, R. & Teppa, F., 2002. "Saving and habit formation: : evidence from Dutch panel data," Discussion Paper 62, Tilburg University, Center for Economic Research. [Downloadable!]
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  3. Rob Euwals & Daniel J. van Vuuren & Ronald P. Wolthoff, 2006. "Early Retirement Behaviour in the Netherlands: Evidence from a Policy Reform," Tinbergen Institute Discussion Papers 06-021/3, Tinbergen Institute. [Downloadable!]
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  4. Ada Ferrer-i-Carbonell, 2002. "Income and Well-being," Tinbergen Institute Discussion Papers 02-019/3, Tinbergen Institute. [Downloadable!]
  5. Martin Hohnisch, 2003. "Hildenbrand Distribution Economies as Limiting Empirical Distributions of Random Economies," Bonn Econ Discussion Papers bgse28_2003, University of Bonn, Germany. [Downloadable!]
  6. Aronsson, Thomas & Blomquist, Sören & Sacklén, Hans, 1998. "Identifying Interdependent Behavior in an Empirical Model of Labor Supply," Working Paper Series 147, Trade Union Institute for Economic Research. [Downloadable!]
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  7. Thi Kim Cuong PHAM, 2004. "Wealth distribution, endogenous fiscal policy and growth: status-seeking implications," Working Papers of BETA 2004-11, Bureau d'Economie Théorique et Appliquée, ULP, Strasbourg. [Downloadable!]
  8. Frederic Tournemaine, 2008. "Social aspirations and choice of fertility: why can status motive reduce per-capita growth?," Journal of Population Economics, Springer, vol. 21(1), pages 49-66, January. [Downloadable!] (restricted)
  9. Markus Knell, . "Social Comparisons, Inequality, and Growth," IEW - Working Papers iewwp005, Institute for Empirical Research in Economics - IEW. [Downloadable!]
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  10. Fabio Maccheroni & Massimo Marinacci & Aldo Rustichini, 2008. "Social Decision Theory: Choosing within and between Groups," Carlo Alberto Notebooks 71, Collegio Carlo Alberto. [Downloadable!]
  11. Tobias Guse & Burkhard Hehenkamp, 2004. "On the Strategic Advantage of Interdependent Preferences in Rent-Seeking Contests," Discussion Papers in Economics 03_02, University of Dortmund, Department of Economics. [Downloadable!]
  12. Kooreman, Peter, 2003. "Time, Money, Peers, and Parents: Some Data and Theories on Teenage Behavior," IZA Discussion Papers 931, Institute for the Study of Labor (IZA). [Downloadable!]
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  13. Alexis Direr, 2000. "Relative Consumption and Saving," Econometric Society World Congress 2000 Contributed Papers 1056, Econometric Society. [Downloadable!]
  14. López-Bazo, Enrique & Del Barrio, Tomás & Artís, Manuel, 2000. "The Geographical Distribution Of Unemployment In Spain," ERSA conference papers ersa00p220, European Regional Science Association. [Downloadable!]
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