IDEAS home Printed from https://ideas.repec.org/p/tiu/tiurem/151748e4-be7e-450a-9005-0056720ef9b7.html
   My bibliography  Save this paper

Interdependent preferences : An econometric analysis

Author

Listed:
  • Kapteyn, A.J.

    (Tilburg University, Faculty of Economics)

  • van de Geer, S.
  • van de Stadt, H.
  • Wansbeek, T.J.

Abstract

The theoretical model of Gaertner (1974) and Pollak (1976) for the interdependence of preferences in the Linear Expenditure System is estimated for a cross-section of households. The interdependence of consumption of different households has implications for the stochastic structure of the model and for the identifiability of its parameters. Both aspects are dealt with. The empirical results indicate a significant role played by the interdependence of preferences One of its implications is that predictions of the effects of changes in a household's exogenous variables differ according to whether the exogenous variable only changes for this household or for all households jointly. Coauthors are Sara van de Geer, Huib van de Stadt, and Tom Wansbeek.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Kapteyn, A.J. & van de Geer, S. & van de Stadt, H. & Wansbeek, T.J., 1984. "Interdependent preferences : An econometric analysis," Research Memorandum FEW 140, Tilburg University, School of Economics and Management.
    • Handle: RePEc:tiu:tiurem:151748e4-be7e-450a-9005-0056720ef9b7
    as

    Download full text from publisher

    File URL: https://pure.uvt.nl/ws/portalfiles/portal/1137404/KAGSSH5621236.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    2. John Muellbauer, 1988. "Habits, Rationality and Myopia in the Life Cycle Consumption Function," Annals of Economics and Statistics, GENES, issue 9, pages 47-70.
    3. Pollak, Robert A, 1976. "Interdependent Preferences," American Economic Review, American Economic Association, vol. 66(3), pages 309-320, June.
    4. Blanciforti, Laura & Green, Richard, 1983. "An Almost Ideal Demand System Incorporating Habits: An Analysis of Expenditures on Food and Aggregate Commodity Groups," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 511-515, August.
    5. Pashardes, Panos, 1986. "Myopic and Forward Looking Behavior in a Dynamic Demand System," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(2), pages 387-397, June.
    6. 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.
    7. Kilpatrick, Robert W, 1973. "The Income Elasticity of the Poverty Line," The Review of Economics and Statistics, MIT Press, vol. 55(3), pages 327-332, August.
    8. Sawhill, Isabel V, 1988. "Poverty in the U.S.: Why Is It So Persistent?," Journal of Economic Literature, American Economic Association, vol. 26(3), pages 1073-1119, September.
    9. Phlips, Louis, 1972. "A Dynamic Version of the Linear Expenditure Model," The Review of Economics and Statistics, MIT Press, vol. 54(4), pages 450-458, November.
    10. Pollak, Robert A & Wales, Terence J, 1981. "Demographic Variables in Demand Analysis," Econometrica, Econometric Society, vol. 49(6), pages 1533-1551, November.
    11. Kapteyn, Arie & Wansbeek, Tom & Buyze, Jeannine, 1980. "The dynamics of preference formation," Journal of Economic Behavior & Organization, Elsevier, vol. 1(2), pages 123-157, June.
    12. Pollak, Robert A & Wales, Terrence J, 1969. "Estimation of the Linear Expenditure System," Econometrica, Econometric Society, vol. 37(4), pages 611-628, October.
    13. Darrough, Masako N & Pollak, Robert A & Wales, Terence J, 1983. "Dynamic and Stochastic Structure: An Analysis of Three Time Series of Household Budget Studies," The Review of Economics and Statistics, MIT Press, vol. 65(2), pages 274-281, May.
    14. PHLIPS, Louis & SPINNEWYN, Frans, 1982. "Rationality versus myopia in dynamic demand systems," LIDAM Reprints CORE 468, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    15. repec:adr:anecst:y:1988:i:9:p:03 is not listed on IDEAS
    16. Kapteyn, Arie & Van Praag, Bernard M. S. & Van Herwaarden, Floor G., 1978. "Individual welfare functions and social reference spaces," Economics Letters, Elsevier, vol. 1(2), pages 173-177.
    17. Bentler, P. M., 1983. "Simultaneous equation systems as moment structure models : With an introduction to latent variable models," Journal of Econometrics, Elsevier, vol. 22(1-2), pages 13-42.
    18. Aigner, Dennis J. & Hsiao, Cheng & Kapteyn, Arie & Wansbeek, Tom, 1984. "Latent variable models in econometrics," Handbook of Econometrics, in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 23, pages 1321-1393, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Woittiez, Isolde & Kapteyn, Arie, 1998. "Social interactions and habit formation in a model of female labour supply," Journal of Public Economics, Elsevier, vol. 70(2), pages 185-205, November.
    2. Jacobs Martin, 2016. "Accounting for Changing Tastes: Approaches to Explaining Unstable Individual Preferences," Review of Economics, De Gruyter, vol. 67(2), pages 121-183, August.
    3. Richards, Timothy J. & Patterson, Paul M., 1998. "New Varieties and the Returns to Commodity Promotion: Washington Fuji Apples," Working Papers 28541, Arizona State University, Morrison School of Agribusiness and Resource Management.
    4. Brown, Mark G. & Lee, Jonq-Ying, 1992. "A Dynamic Differential Demand System: An Application Of Translation," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 24(2), pages 1-10, December.
    5. Niemi, Janne, 2018. "Short-run and long-run food import elasticities with persistent trading habits," Working Papers 111, VATT Institute for Economic Research.
    6. Boto-García, David & Baños-Pino, José Francisco, 2022. "Social influence and bandwagon effects in tourism travel," Annals of Tourism Research, Elsevier, vol. 93(C).
    7. Xin Gu & Zhang-Yue Zhou & Yan-Rui Wu, 2019. "Understanding China’S Urban Consumption Patterns: New Estimates And Implications," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 961-981, September.
    8. Richards, Timothy J. & Kagan, Albert & Gao, Xiaoming, 1997. "Factors Influencing Changes In Potato And Potato Substitute Demand," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 26(1), pages 1-15, April.
    9. van de Stadt, Huib & Kapteyn, Arie & van de Geer, Sara, 1985. "The Relativity of Utility: Evidence from Panel Data," The Review of Economics and Statistics, MIT Press, vol. 67(2), pages 179-187, May.
    10. Chen Zhen & Michael K. Wohlgenant, 2006. "Meat Demand under Rational Habit Persistence," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 54(4), pages 477-495, December.
    11. Lybbert, Travis J. & Vosti, Stephen A. & Adams, Katherine P. & Guissou, Rosemonde, 2018. "Household demand persistence for child micronutrient supplementation," Journal of Health Economics, Elsevier, vol. 62(C), pages 147-164.
    12. Ali Modarres, 2002. "Persistent Poverty and the Failure of Area-Based Initiatives in the U.S," Local Economy, London South Bank University, vol. 17(4), pages 289-302, November.
    13. LaFrance, Jeffrey T., 2000. "Duality Theory For The Household," CUDARE Working Papers 25058, University of California, Berkeley, Department of Agricultural and Resource Economics.
    14. Jean-Marc Robin & Louis Lévy-Garboua, 1988. "Les représentations implicites des goûts dans les modèles dynamiques de demande," Revue Économique, Programme National Persée, vol. 39(1), pages 33-55.
    15. Paul Cashin, 1991. "A Model Of The Disaggregated Demand For Meat In Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(3), pages 263-283, December.
    16. repec:hal:spmain:info:hdl:2441/1ej8deo44v9t38bpf73n3rflp8 is not listed on IDEAS
    17. LaFrance, Jeffrey T., 2008. "The structure of US food demand," Journal of Econometrics, Elsevier, vol. 147(2), pages 336-349, December.
    18. Okrent, Abigail M. & Alston, Julian M., 2011. "Demand for Food in the United States: A Review of Literature, Evaluation of Previous Estimates, and Presentation of New Estimates of Demand," Monographs, University of California, Davis, Giannini Foundation, number 251908, December.
    19. Clément Bellet, 2017. "Essays on inequality, social preferences and consumer behavior [Inégalités, préférences sociales et comportement du consommateur]," SciencePo Working papers Main tel-03455045, HAL.
    20. Frank A. Sloan, 1977. "A Model of State Income Maintenance Decisions," Public Finance Review, , vol. 5(2), pages 139-173, April.
    21. Kenneth Reinert & Gina Scorza, 1996. "The effects of a North American free trade agreement on the US glassware market," Applied Economics Letters, Taylor & Francis Journals, vol. 3(7), pages 451-454.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tiu:tiurem:151748e4-be7e-450a-9005-0056720ef9b7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Richard Broekman (email available below). General contact details of provider: https://www.tilburguniversity.edu/about/schools/economics-and-management/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.