Household Commodity Demand and Demographics in the Netherlands: A Micro-Economic Analysis

A.S. Kalwij, R.J.M. Alessie, P.F. Fontein

Research output: Working paperDiscussion paperOther research output

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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 & transport and clothing compared to a couple with a non-employed spouse.
Original languageEnglish
Place of PublicationTilburg
PublisherEconometrics
Number of pages28
Volume1997-76
Publication statusPublished - 1997

Publication series

NameCentER Discussion Paper
Volume1997-76

Fingerprint

Household
Demographics
Commodities
Microeconomics
Economic analysis
The Netherlands
Household expenditure
Spouses
Female employment
Survey data
Recreation
Education
Luxury
Price elasticity
Micro data
Almost ideal demand system
Equivalence scales
Weak separability
Demographic characteristics
Interaction

Keywords

  • demand systems
  • consumption
  • demographics

Cite this

Kalwij, A. S., Alessie, R. J. M., & Fontein, P. F. (1997). Household Commodity Demand and Demographics in the Netherlands: A Micro-Economic Analysis. (CentER Discussion Paper; Vol. 1997-76). Tilburg: Econometrics.
Kalwij, A.S. ; Alessie, R.J.M. ; Fontein, P.F. / Household Commodity Demand and Demographics in the Netherlands : A Micro-Economic Analysis. Tilburg : Econometrics, 1997. (CentER Discussion Paper).
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Kalwij, AS, Alessie, RJM & Fontein, PF 1997 'Household Commodity Demand and Demographics in the Netherlands: A Micro-Economic Analysis' CentER Discussion Paper, vol. 1997-76, Econometrics, Tilburg.

Household Commodity Demand and Demographics in the Netherlands : A Micro-Economic Analysis. / Kalwij, A.S.; Alessie, R.J.M.; Fontein, P.F.

Tilburg : Econometrics, 1997. (CentER Discussion Paper; Vol. 1997-76).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Household Commodity Demand and Demographics in the Netherlands

T2 - A Micro-Economic Analysis

AU - Kalwij, A.S.

AU - Alessie, R.J.M.

AU - Fontein, P.F.

N1 - Pagination: 28

PY - 1997

Y1 - 1997

N2 - 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 & transport and clothing compared to a couple with a non-employed spouse.

AB - 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 & transport and clothing compared to a couple with a non-employed spouse.

KW - demand systems

KW - consumption

KW - demographics

M3 - Discussion paper

VL - 1997-76

T3 - CentER Discussion Paper

BT - Household Commodity Demand and Demographics in the Netherlands

PB - Econometrics

CY - Tilburg

ER -

Kalwij AS, Alessie RJM, Fontein PF. Household Commodity Demand and Demographics in the Netherlands: A Micro-Economic Analysis. Tilburg: Econometrics. 1997. (CentER Discussion Paper).