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Household commodity demand and demographics in the Netherlands: A microeconometric analysis

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  • Adriaan Kalwij

    ()
    (CentER for Economic Research and Economics Institute Tilburg, Tilburg University, P.O. Box 90153, 5000LE Tilburg, The Netherlands)

  • Rob Alessie

    ()
    (CentER for Economic Research and Economics Institute Tilburg, Tilburg University, P.O. Box 90153, 5000LE Tilburg, The Netherlands)

  • Peter Fontein

    ()
    (CentER for Economic Research and Economics Institute Tilburg, Tilburg University, P.O. Box 90153, 5000LE Tilburg, The Netherlands)

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 and transport and clothing compared to a couple with a non-employed spouse.

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Bibliographic Info

Article provided by Springer in its journal Journal of Population Economics.

Volume (Year): 11 (1998)
Issue (Month): 4 ()
Pages: 551-577

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Handle: RePEc:spr:jopoec:v:11:y:1998:i:4:p:551-577

Note: Received: 12 September 1997/Accepted: 27 February 1998
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Keywords: Demand systems · consumption · demographics;

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References

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  1. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-97, June.
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Cited by:
  1. Sonya Kostova Huffman & Stanley R. Johnson, 2000. "Empirical Tests of Impacts of Rationing: The Case of Poland in Transition," Center for Agricultural and Rural Development (CARD) Publications 00-wp237, Center for Agricultural and Rural Development (CARD) at Iowa State University.
  2. Ada Ferrer-i-Carbonell & Jeroen van den Bergh, 2004. "A Micro-Econometric Analysis of Determinants of Unsustainable Consumption in The Netherlands," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 27(4), pages 367-389, April.
  3. van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, vol. 66(4), pages 559-574, July.
  4. Adriaan Kalwij & Wiemer Salverda, 2004. "Changing Household Demand Patterns in the Netherlands: some explanations," DEMPATEM Working Papers wp3, AIAS, Amsterdam Institute for Advanced Labour Studies.
  5. Rob Alessie & Joppe Ree, 2009. "Explaining The Hump In Life Cycle Consumption profiles," De Economist, Springer, vol. 157(1), pages 107-120, March.
  6. Joo, Hyunjeong & Mishra, Ashok K., 2013. "Labor Supply and Food Consumption Behavior of Farm Households: Evidence from South Korea," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150420, Agricultural and Applied Economics Association.
  7. Thomas Marsh & Ted Schroeder & James Mintert, 2004. "Impacts of meat product recalls on consumer demand in the USA," Applied Economics, Taylor & Francis Journals, vol. 36(9), pages 897-909.

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