Income Effects on Services Expenditures
AbstractEngel curves suffer from the fact that habit or addiction effects are not taken into account on cross sections. Also, income effects may differ between social groups, and cross-section parameters may be biased relatively to time-series estimations. We propose to estimate dynamic Engel curves on individual cross-section data using a new instrumentation of past expenditures based on cohort effects and compare the influence of income changes according to static and dynamic estimates. Finally, a domestic production model allows to calculate the opportunity cost of domestic activities and to explain the difference between the U.S. and European expenditures on services. The article uses the 1979, 1984, 1989 and 1995 Insee Family budget surveys.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by AIAS, Amsterdam Institute for Advanced Labour Studies in its series DEMPATEM Working Papers with number wp7.
Date of creation: Feb 2004
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-07-26 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Joseph G. Altonji & Aloysius Siow, 1986.
"Testing the Response of Consumption to Income Changes with (Noisy) PanelData,"
NBER Working Papers
2012, National Bureau of Economic Research, Inc.
- Altonji, Joseph G & Siow, Aloysius, 1987. "Testing the Response of Consumption to Income Changes with (Noisy) Panel Data," The Quarterly Journal of Economics, MIT Press, vol. 102(2), pages 293-328, May.
- Duncan, G.J. & Gardes, F. & Gaubert, P. & Starzec, C., 1998. "A Comparison of Consumption Models Estimated on American and Polish Panel and Pseudo-Panel Data," Papiers du Laboratoire de MicroÃÂ©conomie AppliquÃÂ©e 1998-09, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
- Shiyuan Chen & Sally Wallace, 2009. "Food Consumption in Jamaica: A Household and Social Behavior," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0901, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiemer Salverda).
If references are entirely missing, you can add them using this form.