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Demographics and consumption: evolution and composition of household expenditure in Italy

Author

Listed:
  • Concetta Rondinelli

    (Bank of Italy)

  • Federico Tullio

    (Bank of Italy)

  • Francesca Zanichelli

    (Bank of Italy)

Abstract

This paper analyses the extent to which demographic changes have affected household consumption behaviour over the period 1997-2023. Using microdata from the Italian Household Budget Survey (HBS), we show that average household expenditure in real terms declined significantly over the last twenty-five years. Changes in population structure contributed to this trend: population ageing had only a limited impact, whereas the decline in average household size and in the share of couples with children played an important role. These changes, on the other hand, mitigated the decline in per-capita consumption and had only a negligible effect on equivalised consumption. The composition of household expenditure remained broadly stable over time for most expenditure categories. By contrast, the share allocated to housing and utilities increased substantially, mainly reflecting relative price dynamics and, to a lesser extent, the rising prevalence of single-person households.

Suggested Citation

  • Concetta Rondinelli & Federico Tullio & Francesca Zanichelli, 2026. "Demographics and consumption: evolution and composition of household expenditure in Italy," Questioni di Economia e Finanza (Occasional Papers) 1033, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_1033_26
    as

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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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