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Households Consumption Patterns and Equivalence Scales in Italy: 1997-2004

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Author Info
Silvia Tiezzi ()
Fabrizio balli ()
Abstract

We use a sample of 43,700 observations on Italian households’ current expenditures to investigate consumption patterns from 1997 to 2004, a time period which encompasses the introduction of the Euro. Compensated and uncompensated price elasticities and expenditure elasticities for ten goods and heterogeneous households are obtained from the estimated parameters of a complete Censored non linear Almost Ideal Demand System (CAIDS) with demographic shifters. To tackle the problem of corner solutions for some goods we adopt the Two Step estimator proposed by Shonkweiler and Yen (1999). Parametric equivalence scales for the investigation period 1997-2004 are also computed for households with different demographic composition and different geographical location.

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Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 535.

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Date of creation: Jul 2008
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Handle: RePEc:usi:wpaper:535

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Related research
Keywords: Equivalence Scales; Demand Analysis; Censoring;

Find related papers by JEL classification:
D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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  1. Steven T. Yen & Biing-Hwan Lin, 2006. "A Sample Selection Approach to Censored Demand Systems," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 88(3), pages 742-749, 08. [Downloadable!] (restricted)
  2. Donaldson, David & Pendakur, Krishna, 2006. "The Identification of Fixed Costs From Consumer Behavior," Journal of Business & Economic Statistics, American Statistical Association, vol. 24, pages 255-265, July. [Downloadable!] (restricted)
  3. Arthur Lewbel, 2000. "A Rational Rank Four Demand System," Boston College Working Papers in Economics 463, Boston College Department of Economics, revised 04 Apr 2003. [Downloadable!]
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  4. Koulovatianos, Christos & Schroder, Carsten & Schmidt, Ulrich, 2005. "On the income dependence of equivalence scales," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 967-996, June. [Downloadable!] (restricted)
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  5. Pashardes, Panos, 1991. "Contemporaneous and intertemporal child costs : Equivalent expenditure vs. equivalent income scales," Journal of Public Economics, Elsevier, vol. 45(2), pages 191-213, July. [Downloadable!] (restricted)
  6. Perali, Federico & Chavas, Jean-Paul, 2000. " Estimation of Censored Demand Equations from Large Cross-Section Data," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(4), pages 1022-37, November. [Downloadable!] (restricted)
  7. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June. [Downloadable!] (restricted)
  8. Yen, Steven T & Kan, Kamhon & Su, Shew-Jiuan, 2002. "Household Demand for Fats and Oils: Two-Step Estimation of a Censored Demand System," Applied Economics, Taylor and Francis Journals, vol. 34(14), pages 1799-1806, September. [Downloadable!] (restricted)
  9. 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. [Downloadable!] (restricted)
  10. Murphy, Kevin M & Topel, Robert H, 1985. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(4), pages 370-79, October.
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  11. Harald Tauchmann, 2005. "Efficiency of two-step estimators for censored systems of equations: Shonkwiler and Yen reconsidered," Applied Economics, Taylor and Francis Journals, vol. 37(4), pages 367-374, March. [Downloadable!] (restricted)
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