IDEAS home Printed from https://ideas.repec.org/a/ris/apltrx/0259.html
   My bibliography  Save this article

On endogeneity of consumer expenditures in the estimation of households demand system

Author

Listed:
  • Timofeeva, Anastasiia

    () (Novosibirsk State Technical University, Novosibirsk, Russia)

Abstract

The paper analyzes one case of the endogeneity problem, namely, the presence of measurement error in consumer expenditures by estimation of the demand system according to the household sample surveys. Based on factor analysis a novel approach is proposed and tested. It allows weakening the bias of demand elasticity estimates and does not require additional information (instrumental variables, repeated observations). Its advantage is the possibility of estimating the parameters of the true consumer expenditures distribution which give an idea of the distortion degree of information on the population expenditures.

Suggested Citation

  • Timofeeva, Anastasiia, 2015. "On endogeneity of consumer expenditures in the estimation of households demand system," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 37(1), pages 87-106.
    • Handle: RePEc:ris:apltrx:0259
    as

    Download full text from publisher

    File URL: http://pe.cemi.rssi.ru/pe_2015_1_87-106.pdf
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jerry Hausman, 2001. "Mismeasured Variables in Econometric Analysis: Problems from the Right and Problems from the Left," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 57-67, Fall.
    2. McDonald, James B, 1984. "Some Generalized Functions for the Size Distribution of Income," Econometrica, Econometric Society, vol. 52(3), pages 647-663, May.
    3. Deaton, Angus, 1986. "Demand analysis," Handbook of Econometrics,in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 3, chapter 30, pages 1767-1839 Elsevier.
    4. Brown, Alan & Deaton, Angus S, 1972. "Surveys in Applied Economics: Models of Consumer Behaviour," Economic Journal, Royal Economic Society, vol. 82(328), pages 1145-1236, December.
    5. Richard Blundell & Xiaohong Chen & Dennis Kristensen, 2007. "Semi-Nonparametric IV Estimation of Shape-Invariant Engel Curves," Econometrica, Econometric Society, vol. 75(6), pages 1613-1669, November.
    6. Hausman, J. A. & Newey, W. K. & Powell, J. L., 1995. "Nonlinear errors in variables Estimation of some Engel curves," Journal of Econometrics, Elsevier, vol. 65(1), pages 205-233, January.
    7. Peter Ebbes & Michel Wedel & Ulf Böckenholt, 2009. "Frugal IV alternatives to identify the parameter for an endogenous regressor," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(3), pages 446-468, April.
    8. Jushan Bai, 2003. "Inferential Theory for Factor Models of Large Dimensions," Econometrica, Econometric Society, vol. 71(1), pages 135-171, January.
    9. Peter Ebbes, 2007. "A non-technical guide to instrumental variables and regressor-error dependencies (in Russian)," Quantile, Quantile, issue 2, pages 3-20, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    endogenous regressor; measurement error; consumer expenditures; income elasticity of demand; factor analysis; method of instrumental variables.;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:apltrx:0259. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anatoly Peresetsky). General contact details of provider: http://appliedeconometrics.cemi.rssi.ru/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.