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Total expenditure elasticity of non-durable consumption of European households

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Abstract

This document presents the results of an empirical analysis carried out in order to estimate total expenditure elasticities for the household consumption module of the FIDELIO model. The estimates are based on survey data for the following six European countries: Austria, France, Italy, Slovakia, Spain, and the UK. The analysis deals with twelve categories of non-durable consumption: four energy- and eight non-energy-related goods and services. Results appear to be in line with the comparable elasticity estimates of the existing literature. Socio-demographic controls related to both household characteristics and housing conditions offer interesting additional results that may be useful at a later stage of the analysis with the FIDELIO model.

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  • Simone Salotti & Letizia Montinari & Antonio F. Amores & José Manuel Rueda-Cantuche, 2015. "Total expenditure elasticity of non-durable consumption of European households," JRC Research Reports JRC94405, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc94405
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    Cited by:

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    3. Kurt Kratena & Mark Sommer & Gerhard Streicher & Simone Salotti & Juan Manuel Valderas Jaramillo, 2017. "FIDELIO 2: Overview and Theoretical Foundations of the Second Version of the Fully Interregional Dynamic Econometric Long-term Input-Output Model for the EU 27," WIFO Studies, WIFO, number 61880.
    4. Kurt Kratena & Gerhard Streicher, 2017. "Fiscal Policy Multipliers and Spillovers in a Multi-Regional Macroeconomic Input-Output Model," WIFO Working Papers 540, WIFO.
    5. Tovar Reaños, Miguel A. & Lynch, Muireann Á., 2022. "Measuring carbon tax incidence using a fully flexible demand system. Vertical and horizontal effects using Irish data," Energy Policy, Elsevier, vol. 160(C).
    6. Sommer, Mark & Kratena, Kurt, 2017. "The Carbon Footprint of European Households and Income Distribution," Ecological Economics, Elsevier, vol. 136(C), pages 62-72.
    7. Ina Meyer & Mark Sommer & Kurt Kratena, 2018. "Energy Scenarios 2050 for Austria," WIFO Studies, WIFO, number 61089.
    8. Reaños, Miguel Tovar & De Bruin, Kelly & Meier, David & Yakut, Aykut Mert, 2022. "Economic and Distributional Impacts of turning the Value-Added Tax into a Carbon Tax," Papers WP739, Economic and Social Research Institute (ESRI).
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    More about this item

    Keywords

    Income elasticity; household consumption; non-durable goods; survey data;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models

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