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Linear household technologies

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  • C. Andrea Bollino

    (Luiss, Viale Pola 12, 00198 Rome, Italy)

  • Federico Perali

    (Department of Economics, University of Verona, Via dell'Artigliere 19, 37129 Verona, Italy)

  • Nicola Rossi

    (Department of Economic Studies, University of Rome 'Tor Vergata', 00133 Rome, Italy)

Abstract

This paper discusses, estimates and formally compares the best known procedures for incorporating demographic variables into complete demand systems. In particular, a class of general procedures belonging to Gorman's family of 'general linear household technologies' is introduced. Estimation and comparison of different procedures make use of Italian household budget data for the years 1973-1992, incorporating a single demographic variable (family size) into a Generalized Quadratic Almost Ideal Demand System. In our empirical example, however, even the most general household technologies are unable to fully capture the behavioural heterogeneity shown by the data. Copyright © 2000 John Wiley & Sons, Ltd.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 15 (2000)
Issue (Month): 3 ()
Pages: 275-287

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Handle: RePEc:jae:japmet:v:15:y:2000:i:3:p:275-287

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  1. Nelson, Julie A, 1992. "Methods of Estimating Household Equivalence Scales: An Empirical Investigation," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 38(3), pages 295-310, September.
  2. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-51, November.
  3. Lewbel, Arthur, 1985. "A Unified Approach to Incorporating Demographic or Other Effects into Demand Systems," Review of Economic Studies, Wiley Blackwell, vol. 52(1), pages 1-18, January.
  4. Lewbel, Arthur, 1991. "The Rank of Demand Systems: Theory and Nonparametric Estimation," Econometrica, Econometric Society, vol. 59(3), pages 711-30, May.
  5. Muellbauer, John, 1980. "The Estimation of the Prais-Houthakker Model of Equivalence Scales," Econometrica, Econometric Society, vol. 48(1), pages 153-76, January.
  6. Browning, Martin, 1992. "Children and Household Economic Behavior," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1434-75, September.
  7. Tsakloglou, Panos, 1991. "Estimation and Comparison of Two Simple Models of Equivalence Scales for the Cost of Children," Economic Journal, Royal Economic Society, vol. 101(405), pages 343-57, March.
  8. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-59, June.
  9. Muellbauer, John, 1977. "Testing the Barten Model of Household Composition Effects and the Cost of Children," Economic Journal, Royal Economic Society, vol. 87(347), pages 460-87, September.
  10. Deaton, Angus S & Muellbauer, John, 1986. "On Measuring Child Costs: With Applications to Poor Countries," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 720-44, August.
  11. James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
  12. Ray, Ranjan, 1985. "A nested test of the Barten model of equivalence scales," Economics Letters, Elsevier, vol. 17(4), pages 411-412.
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Cited by:
  1. Liu, Kang Ernest & Chern, Wen S., 2004. "Translating And Scaling Of Budget Shares: An Empirical Analysis Of Chinese Urban Household Demand For Meat," 2004 Annual meeting, August 1-4, Denver, CO 20001, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. repec:hal:wpaper:halshs-00586686 is not listed on IDEAS
  3. Vincenzo Atella & Carlos Arias & Federico Perali & Raffaella Castagnini, 2003. "Estimation of the Sharing Rule Between Adults and Children and Related Equivalence Scales Within a Collective Consumption Framework," CEIS Research Paper 28, Tor Vergata University, CEIS.
  4. Mangiavacchi, Lucia & Piccoli, Luca, 2011. "Improving the measurement of child welfare in the context of intra-household inequality," Children and Youth Services Review, Elsevier, vol. 33(2), pages 226-232, February.
  5. Liu, Kang Ernest & Chern, Wen S., 2003. "Food Demand In Urban China: An Application Of A Multi-Stage Censored Demand System," 2003 Annual meeting, July 27-30, Montreal, Canada 21919, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Lucia Mangiavacchi & Luca Piccoli, 2009. "Child welfare and intra-household inequality in Albania," Working Papers 149, ECINEQ, Society for the Study of Economic Inequality.
  7. Perali, Federico, 2008. "The second Engel law: Is it a paradox?," European Economic Review, Elsevier, vol. 52(8), pages 1353-1377, November.

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