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

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Listed:
  • Kalwij, A.S.

    (Tilburg University, School of Economics and Management)

  • Alessie, R.J.M.
  • Fontein, P.F.

    (Tilburg University, School of Economics and Management)

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.
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Suggested Citation

  • Kalwij, A.S. & Alessie, R.J.M. & Fontein, P.F., 1998. "Household commodity demand and demographics in The Netherlands : A microeconometric analysis," Other publications TiSEM 414b2144-b49e-42f9-8081-e, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiutis:414b2144-b49e-42f9-8081-e303eff947f7
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    File URL: https://pure.uvt.nl/ws/portalfiles/portal/290210/households.pdf
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    References listed on IDEAS

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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:

    1. 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.
    2. Sun, Chuanwang & Ouyang, Xiaoling, 2016. "Price and expenditure elasticities of residential energy demand during urbanization: An empirical analysis based on the household-level survey data in China," Energy Policy, Elsevier, vol. 88(C), pages 56-63.
    3. van den Bergh, Jeroen C.J.M., 2008. "Environmental regulation of households: An empirical review of economic and psychological factors," Ecological Economics, Elsevier, vol. 66(4), pages 559-574, July.
    4. Huffman, Sonya Kostova & Johnson, Stanley R., 2004. "Empirical tests of impacts of rationing: the case of Poland in transition," Economic Systems, Elsevier, vol. 28(1), pages 79-99, March.
    5. Joo, Hyunjeong & Mishra, Ashok K., 2013. "Labor Supply and Food Consumption Behavior of Farm Households: Evidence from South Korea," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150420, Agricultural and Applied Economics Association.
    6. Thomas Marsh & Ted Schroeder & James Mintert, 2004. "Impacts of meat product recalls on consumer demand in the USA," Applied Economics, Taylor & Francis Journals, vol. 36(9), pages 897-909.
    7. Rob Alessie & Joppe Ree, 2009. "Explaining The Hump In Life Cycle Consumption profiles," De Economist, Springer, vol. 157(1), pages 107-120, March.
    8. Sánchez, Luis & Reyes, Orlando, 2016. "La demanda de gasolinas, gas licuado de petróleo y electricidad en el Ecuador: elementos para una reforma fiscal ambiental," Documentos de Proyectos 40629, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    10. Adriaan Kalwij & Wiemer Salverda, 2004. "Changing Household Demand Patterns in the Netherlands: some explanations," DEMPATEM Working Papers wp3, AIAS, Amsterdam Institute for Advanced Labour Studies.

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    More about this item

    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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