Household Commodity Demand and Demographics in the Netherlands: A Microeconometric Analysis

Posted: 15 Jun 1999

See all articles by Adriaan Kalwij

Adriaan Kalwij

IZA Institute of Labor Economics

Rob Alessie

Utrecht University - School of Economics; VU University Amsterdam - Department of Economics

Peter Fontein

Tilburg University

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.

JEL Classification: C30, D12

Suggested Citation

Kalwij, Adriaan S. and Alessie, R.J.M. (Rob) and Fontein, Peter, Household Commodity Demand and Demographics in the Netherlands: A Microeconometric Analysis. Journal of Population Economics, Vol. 11, Issue 4, 1998. Available at SSRN: https://ssrn.com/abstract=147314

Adriaan S. Kalwij (Contact Author)

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

R.J.M. (Rob) Alessie

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, 3584 EC
Netherlands
31 30 253 9814 (Phone)
31 30 253 7373 (Fax)

HOME PAGE: http://www2.econ.uu.nl/users/alessie/

VU University Amsterdam - Department of Economics ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands
+31 20 444 6047 (Phone)
+31 20 444 6005 (Fax)

Peter Fontein

Tilburg University ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

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