Journal of Population Economics

, Volume 11, Issue 4, pp 551–577 | Cite as

Household commodity demand and demographics in the Netherlands: A microeconometric analysis

  • Adriaan Kalwij
  • Rob Alessie
  • Peter Fontein

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.

Key words: Demand systems consumption demographics 
JEL classification: C30 D12 

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Copyright information

© Springer-Verlag Berlin Heidelberg 1998

Authors and Affiliations

  • Adriaan Kalwij
    • 1
  • Rob Alessie
    • 1
  • Peter Fontein
    • 1
  1. 1.CentER for Economic Research and Economics Institute Tilburg, Tilburg University, P.O. Box 90153, 5000LE Tilburg, The Netherlands (e-mail: kalwij@kub.nl; alessie@kub.nl; fontein@kub.nl)NL

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