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


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


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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    References listed on IDEAS

    1. Borland, Jeff, 1999. "Earnings Inequality in Australia: Changes, Causes and Consequences," The Economic Record, The Economic Society of Australia, vol. 75(229), pages 177-202, June.
    2. Peter Gottschalk, 1997. "Inequality, Income Growth, and Mobility: The Basic Facts," Journal of Economic Perspectives, American Economic Association, vol. 11(2), pages 21-40, Spring.
    3. Mills, Jeffrey A & Zandvakili, Sourushe, 1997. "Statistical Inference via Bootstrapping for Measures of Inequality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(2), pages 133-150, March-Apr.
    4. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.
    5. Coulter, Fiona A E & Cowell, Frank A & Jenkins, Stephen P, 1992. "Equivalence Scale Relativities and the Extent of Inequality and Poverty," Economic Journal, Royal Economic Society, vol. 102(414), pages 1067-1082, September.
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    Cited by:

    1. 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.
    2. 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.
    3. 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.

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