Household commodity demand and demographics in The Netherlands: A microeconometric analysis
AbstractWe 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 InfoPaper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-78952.
Date of creation: 1998
Date of revision:
Publication status: Published in Journal of Population Economics (1998) v.11, p.551-577
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Other versions of this item:
- Adriaan Kalwij & Rob Alessie & Peter Fontein, 1998. "Household commodity demand and demographics in the Netherlands: A microeconometric analysis," Journal of Population Economics, Springer, vol. 11(4), pages 551-577.
- C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
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