The Economics of Global Consumption Patterns
Henri Theil devoted a good deal of the last two decades of his professional activities to the analysis of international consumption patterns. This paper commences with a review of Theilâ€™s path-breaking research on cross-country demand, and then investigates in some detail two important issues: (i) the extent to which differences in incomes and prices explain international consumption pattern; and (ii) new empirical evidence regarding the extent to which tastes are similar internationally. The paper also contains an evaluation of another important building block of Theilâ€™s work in this area, that of the assumption of preference independence, whereby there are no interactions between goods in the utility function.
Volume (Year): 35 (2003)
Issue (Month): ()
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