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Empirical Regularities in Distributions of Individual Consumption Expenditure

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  • Martin Hohnisch
  • Sabine Pittnauer
  • Manisha Chakrabarty

Abstract

We empirically investigate distributions of individual consumption expenditure f or four commodity categories conditional on fixed income levels. The data stems from the Family Expenditure Survey carried out annually in the United Kingdom. W e use graphical techniques to test for normality and lognormality of these distributions. While mainstream economic theory does not predict any structure for these distributions, we find that in at least three commodity categories individual consumption expenditure conditional on a fixed income level is lognormally distributed.

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  • Martin Hohnisch & Sabine Pittnauer & Manisha Chakrabarty, 2002. "Empirical Regularities in Distributions of Individual Consumption Expenditure," Papers cond-mat/0201195, arXiv.org.
    • Handle: RePEc:arx:papers:cond-mat/0201195
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    References listed on IDEAS

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    1. Debreu, Gerard, 1974. "Excess demand functions," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 15-21, March.
    2. David E. Burmaster & Kimberly M. Thompson, 1999. "Using Animated Probability Plots to Explore the Suitability of Mixture Models with Two Component Distributions," Risk Analysis, John Wiley & Sons, vol. 19(6), pages 1185-1192, December.
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    Cited by:

    1. Barigozzi, Matteo & Alessi, Lucia & Capasso, Marco & Fagiolo, Giorgio, 2012. "The distribution of household consumption-expenditure budget shares," Structural Change and Economic Dynamics, Elsevier, vol. 23(1), pages 69-91.
    2. Schulz, Jan & Mayerhoffer, Daniel M., 2021. "A network approach to consumption," BERG Working Paper Series 173, Bamberg University, Bamberg Economic Research Group.
    3. Giorgio Fagiolo & Lucia Alessi & Matteo Barigozzi & Marco Capasso, 2010. "On the distributional properties of household consumption expenditures: the case of Italy," Empirical Economics, Springer, vol. 38(3), pages 717-741, June.
    4. Matteo Barigozzi & Lucia Alessi & Marco Capasso & Giorgio Fagiolo, 2008. "The Distribution of Consumption-Expenditure Budget Shares. Evidence from Italian Households," LEM Papers Series 2008/18, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.

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