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Expenditure Patterns and Aggregate Consumer Behaviour: Some Experiments with Australian and New Zealand Data

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  • Chatterjee, Srikanta
  • Michelini, Claudio
  • Ray, Ranjan

Abstract

This paper analyzes expenditure patterns in Australia and New Zealand by estimating complete demand systems on budget data. Tests of linear Engel curves and separable preferences are carried out on both data sets. The study also exploits the information on household composition to test for demographic effects. Several new demographically extended demand functional forms are proposed and estimated, and their behavioral and welfare implications in terms of equivalence scales compared. The study yields plausible estimates of price and expenditure elasticities, and shows that relevant price information can be used successfully to estimate the cost of a child. Copyright 1994 by The Economic Society of Australia.

Suggested Citation

  • Chatterjee, Srikanta & Michelini, Claudio & Ray, Ranjan, 1994. "Expenditure Patterns and Aggregate Consumer Behaviour: Some Experiments with Australian and New Zealand Data," The Economic Record, The Economic Society of Australia, vol. 70(210), pages 278-291, September.
  • Handle: RePEc:bla:ecorec:v:70:y:1994:i:210:p:278-91
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    Cited by:

    1. Michelini, Claudio, 1999. "The estimation of a rank 3 demand system with demographic demand shifters from quasi-unit record data of household consumption," Economics Letters, Elsevier, vol. 65(1), pages 17-24, October.
    2. J. V. Meenakshi & Ranjan Ray, 1999. "Regional differences in India's food expenditure pattern: a complete demand systems approach," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(1), pages 47-74.
    3. Griffiths, W.E. & Valenzuela, R., 2001. "Estimating Costs of Children from Micro-Unit Records: A New Procedure Applied to Australian Data," Department of Economics - Working Papers Series 795, The University of Melbourne.

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