The Social Embeddedness of Consumption: Towards the Relationship of Income and Expenditures over Time in Germany
Expenditures and their patterns over time are expressions of the standard of living of individuals, households, and the society they live in. Nevertheless social and economic analysis focused rather on the analysis of production than on consumption, and income was widely used as a main indicator of (economic) well-being. On the other hand, expenditure regards as a measure to describe and estimate the participation of households in the wealth of nation. Therefore, there is an interest in the relationship of income and spending money. It is often considered that expenditure and income are the two sides of the same coin called “social inequality”. This assumption implies a strong relationship between these two measures of welfare inequality. Due to the lack of longitudinal data in Germany, we used repeated crosssectional data (RCS) in our empirical analysis which is based on the West German Income and Expenditure Survey (IES) in 1973, 1978, 1983, 1988 and 1993. The IES’s are representative cross-sections of all West German households, collected by the Federal Statistical Office of Germany. Descriptive methods are used to separate age, cohort, and period effects just as the RCS enables us to use a linear model to shed some light on this issue. The analysis indicates that the relationship between income and expenditure is given but weak: The higher the income the looser the concrete expenditure structure in terms of real consumption is. All in all, the social organisation of consumption is a research object in itself to obtain information about the living standard of individuals and households.
|Date of creation:||2000|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gilbert Ghez & Gary S. Becker, 1975. "The Allocation of Time and Goods over the Life Cycle," NBER Books, National Bureau of Economic Research, Inc, number ghez75-1.
- Dieter B–genhold, 2001. "Social Inequality and the Sociology of Life Style: Material and Cultural Aspects of Social Stratification," American Journal of Economics and Sociology, Wiley Blackwell, vol. 60(4), pages 829-847, 04.
- Hamermesh, Daniel S, 1984.
"Consumption during Retirement: The Missing Link in the Life Cycle,"
The Review of Economics and Statistics,
MIT Press, vol. 66(1), pages 1-7, February.
- Daniel S. Hamermesh, 1982. "Consumption During Retirement: The Missing Link in the Life Cycle," NBER Working Papers 0930, National Bureau of Economic Research, Inc.
- Alessie, Rob & Kapteyn, Arie & Melenberg, Bertrand, 1989.
"The effects of liquidity constraints on consumption Estimation from household panel data,"
European Economic Review,
Elsevier, vol. 33(2-3), pages 547-555, March.
- Alessie, R.J.M. & Melenberg, B. & Kapteyn, A.J., 1989. "The effects of liquidity constraints on consumption : Estimation from household panel data," Other publications TiSEM c43d08ee-1fb3-4ee3-8903-d, Tilburg University, School of Economics and Management.
- Lawrance, Emily C, 1991. "Poverty and the Rate of Time Preference: Evidence from Panel Data," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 54-77, February.
- Fachinger, Uwe, 1998. "Die Verteilung der Vermögen privater Haushalte: Einige konzeptionelle Anmerkungen sowie empirische Befunde für die Bundesrepublik Deutschland," Working papers of the ZeS 13/1998, University of Bremen, Centre for Social Policy Research (ZeS).
- Clair Vickery, 1977. "The Time-Poor: A New Look at Poverty," Journal of Human Resources, University of Wisconsin Press, vol. 12(1), pages 27-48.
- Deaton, Angus S & Ruiz-Castillo, Javier & Thomas, Duncan, 1989. "The Influence of Household Composition on Household Expenditure Patterns: Theory and Spanish Evidence," Journal of Political Economy, University of Chicago Press, vol. 97(1), pages 179-200, February.
- Borsch-Supan, Axel, 1992. "Saving and Consumption Patterns of the Elderly: The German Case," Journal of Population Economics, Springer;European Society for Population Economics, vol. 5(4), pages 289-303.
- Chris Carroll & Lawrence H. Summers, 1989.
"Consumption Growth Parallels Income Growth: Some New Evidence,"
NBER Working Papers
3090, National Bureau of Economic Research, Inc.
- Christopher D. Carroll & Lawrence H. Summers, 1991. "Consumption Growth Parallels Income Growth: Some New Evidence," NBER Chapters, in: National Saving and Economic Performance, pages 305-348 National Bureau of Economic Research, Inc.
- John Freebairn & Bill Griffiths, 2006. "Introduction," The Economic Record, The Economic Society of Australia, vol. 82(s1), pages S1-S1, 09.
- B. Douglas Bernheim & John B. Shoven, 1991. "National Saving and Economic Performance," NBER Books, National Bureau of Economic Research, Inc, number bern91-2.
- Moffitt, Robert, 1993. "Identification and estimation of dynamic models with a time series of repeated cross-sections," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 99-123, September.
- Borsch-Supan, Axel H & Stahl, Konrad, 1991. "Life Cycle Savings and Consumption Constraints: Theory, Empirical Evidence, and Fiscal Implications," Journal of Population Economics, Springer;European Society for Population Economics, vol. 4(3), pages 233-55, August.
- van der Gaag, Jacques & Smolensky, Eugene, 1982. "True Household Equivalence Scales and Characteristics of the Poor in the United States," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 28(1), pages 17-28, March.
- Browning, Martin & Deaton, Angus & Irish, Margaret, 1985. "A Profitable Approach to Labor Supply and Commodity Demands over the Life-Cycle," Econometrica, Econometric Society, vol. 53(3), pages 503-43, May.
- Drakopoulos, Stavros A. & Karayiannis, Anastassios, 1999. "Mainstream Consumer Theory: Delay, Acceptance and History Texts," MPRA Paper 15434, University Library of Munich, Germany.
- Bourguignon, F. & Morrisson, C. & Atkinson, A.B., 1991. "Empirical Studies of Earnings Mobility," DELTA Working Papers 91-14, DELTA (Ecole normale supérieure).
- Jantti, Markus & Kangas, Olli & Ritakallio, Veli-Matti, 1996. "From Marginalism to Institutionalism: Distributional Consequences of the Transformation of the Finnish Pension Regime," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(4), pages 473-91, December.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:1128. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.