Consumption of the Colombian Households, 2006-2007: Estimations of Demand Systems (El Consumo De Los Hogares Colombianos, 2006-2007: Estimación De Sistemas De Demanda)
28 Pages Posted: 7 Nov 2010
Date Written: June 28, 2010
Abstract
Using household data from the 2006 Income and Expenditure survey, we provide a new estimation of demand systems for Colombia. We estimate three different specifications of demand systems, namely, the Linear Expenditure System (LES), the Extended Linear Expenditure System (ELES) and the Almost Ideal Demand System (AIDS). We also calculate expenditure, income and price elasticities for different groups of goods. We find that the expenditure elasticity of food has remained stable over time, around 0.77. Clothing is no longer a luxury good and has become a good with unitary expenditure elasticity. Health and Education are still luxury goods but their expenditure elasticities have decreased over time.
(Utilizando datos a nivel de hogares de la Encuesta de Ingresos y Gastos 2006-2007, presentamos nuevas estimaciones de sistemas de demanda para Colombia. Estimamos tres diferentes especificaciones de sistemas de demanda, a saber, el Sistema Lineal de Gastos (LES), el Sistema Lineal de Gastos Extendido (ELES) y el Sistema Cuasi-Ideal de Demanda (AIDS). También calculamos valores de elasticidades gasto, ingreso y precio para diferentes grupos de bienes. Encontramos que la elasticidad gasto de los alimentos se ha mantenido estable a través del tiempo alrededor de 0.77. Por su parte, el vestuario ha dejado de ser un de bien de lujo para volverse un bien de elasticidad gasto unitaria. Finalmente, la salud y la educación siguen siendo bienes de lujo, pero sus elasticidades gasto han caído a través del tiempo.)
Note: Downloadable document is in Spanish.
Keywords: Demand Systems, Household Expenditure, Expenditure and Price Elasticities, Colombia, Sistemas de Demanda, Gasto de los Hogares, Elasticidades gasto y Precio, Colombia
JEL Classification: D10, D12
Suggested Citation: Suggested Citation
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