Determinants of Household Income and Expenditures

Abstract

This empirical research analyzes the determinants of Colombian household revenues and expenditures. Using a life cycle model with data from the national household survey 1994-1995, the paper shows how the behavior of household income is mainly affected by demographic characteristics and by the social-occupational characteristics of its members. Expenditure behavior is determined principally by income and secondly by the social characteristics of the household and by the expenditure of other households with similar characteristics. The paper also analyzes the influence of income uncertainty on households expenditure, to see if the effect is due to a motive of precaution.

Note: The Downloadable document is in Spanish.

Keywords: Household behavior, household income, household expenditure, uncertainty

JEL Classification: D10, D12, D19