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Household commodity demand and demographics in the Netherlands: A microeconometric analysis

Author

Listed:
  • Adriaan Kalwij

    (CentER for Economic Research and Economics Institute Tilburg, Tilburg University, P.O. Box 90153, 5000LE Tilburg, The Netherlands)

  • Rob Alessie

    (CentER for Economic Research and Economics Institute Tilburg, Tilburg University, P.O. Box 90153, 5000LE Tilburg, The Netherlands)

  • Peter Fontein

    (CentER for Economic Research and Economics Institute Tilburg, Tilburg University, P.O. Box 90153, 5000LE Tilburg, The Netherlands)

Abstract

We investigate the effects of demographics, household expenditure and female employment on the allocation of household expenditure to consumer goods. For this purpose we estimate an Almost Ideal Demand System based on Dutch micro data. We find that interactions between household expenditure and demographics are of significant importance in explaining the allocation to consumer goods. As a consequence, consumer goods such as housing and clothing change with demographic characteristics from luxuries to necessities. Furthermore, this implies that budget and price-elasticities cannot be consistently estimated from aggregated data and that equivalence scales are not identified from budget survey data alone. We reject weak separability of consumer goods from female employment. A couple with an employed spouse has a smaller budget share for housing and personal care and a larger budget share for education, recreation and transport and clothing compared to a couple with a non-employed spouse.

Suggested Citation

  • Adriaan Kalwij & Rob Alessie & Peter Fontein, 1998. "Household commodity demand and demographics in the Netherlands: A microeconometric analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(4), pages 551-577.
    • Handle: RePEc:spr:jopoec:v:11:y:1998:i:4:p:551-577
    Note: Received: 12 September 1997/Accepted: 27 February 1998
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    1. Aldershof, T. & Alessie, R.J.M. & Kapteyn, A., 1997. "Female labor supply and the demand for housing," Other publications TiSEM 973420e7-f79f-4d77-a65e-2, Tilburg University, School of Economics and Management.
    2. Alessie, R.J.M. & Kapteyn, A.J., 1986. "Consumption, savings and demography," Other publications TiSEM b2405438-482f-4af2-9031-0, Tilburg University, School of Economics and Management.
    3. Richard Blundell & Ian Walker, 1986. "A Life-Cycle Consistent Empirical Model of Family Labour Supply Using Cross-Section Data," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(4), pages 539-558.
    4. Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-597, June.
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    Cited by:

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    6. Ada Ferrer-i-Carbonell & Jeroen van den Bergh, 2004. "A Micro-Econometric Analysis of Determinants of Unsustainable Consumption in The Netherlands," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(4), pages 367-389, April.
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    More about this item

    Keywords

    Demand systems · consumption · demographics;

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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