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The Structure of Household Consumption in Finland, 1966-1990


  • Sullström, Risto
  • Suoniemi, Ilpo


The structure of household consumption is examined in nine component categories using data from six Household Budget Surveys, in 1966-1990. The study discusses and presents econometric methods (EQML) to estimate demand models at the micro (household) level. Methods solve for an 'errors-in-variables' problem in a novel way and allow for heteroskedasticity in the errors. Budget share equations which are based on a flexible functional form (QAIDS) are used to analyse the age profiles and Engel curves in consumption. Similarly, the life-cycle profiles and cohort paths in consumption and the effects of household composition are examined. The results show a useful decomposition of the above demographic effects and the effects due to change in prices and improved living standards on the evolution of consumption. In the final part of the study estimates for the price and expenditure elasticities of demand are presented both including and not including the acquisition of durable goods.

Suggested Citation

  • Sullström, Risto & Suoniemi, Ilpo, 1995. "The Structure of Household Consumption in Finland, 1966-1990," Research Reports 27, VATT Institute for Economic Research.
  • Handle: RePEc:fer:resrep:27

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    Cited by:

    1. Sullström, Risto & Loikkanen, Heikki A. & Rantala, Anssi, 1998. "Regional Income Differences in Finland, 1966-96," Discussion Papers 181, VATT Institute for Economic Research.
    2. Marja Riihelä & Risto Sullström & Matti Tuomala, 2008. "Economic Poverty in Finland 1971–2004," Finnish Economic Papers, Finnish Economic Association, vol. 21(1), pages 57-77, Spring.
    3. Marja Riihelä & Risto Sullström & Matti Tuomala, 2001. "On Economic Poverty in Finland in the 1990s," Working Papers 0109, University of Tampere, School of Management, Economics.
    4. John Magnus ROOS, 2015. "Private Consumption in Sweden and Finland Before, During and After the Global Financial Crisis," Journal of Economics Library, KSP Journals, vol. 2(4), pages 321-328, December.


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