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Integrating A Household Demand System In The Input-Output Framework. Methodological Aspects And Modelling Implications

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Author Info

  • Ignazio Mongelli
  • Frederik Neuwahl
  • Jose Rueda-Cantuche

Abstract

In this paper we argue that an accurate representation of household consumption behaviour is central to the analysis and comparison of policy interventions addressing sustainable consumption. Therefore, we propose to extend an input-output model with a specific household consumption model, at the core of which is a system of equations explaining the allocation of the households' overall expenditure across different purposes, such as buying food, the consumption of fuel for heating or electricity for cooling, education of children or travelling in terms of total expenditure and relative prices. This paper shows that the integration of a specific module for household consumption in a standard input-output model is an improvement for the analysis of the policies aimed at altering consumer behaviour.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

Volume (Year): 22 (2010)
Issue (Month): 3 ()
Pages: 201-222

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Handle: RePEc:taf:ecsysr:v:22:y:2010:i:3:p:201-222

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Related research

Keywords: Sustainable consumption analysis; Econometric input-output model; Household demand system; Consumption technology; Purchasers' versus basic prices;

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