Abstract
I estimate a household demand system with specific focus on allocation to children, adults and joint household goods. The main finding is that marginal dollars are spent disproportionately on adult‐assignable goods relative to the way in which the average dollar is spent. The estimation provides both income effects and a complete set of cross‐price effects, which informs analysis both of income transfers and of policies that induce relative price changes. Contrasted with earlier work, the demand system in this paper covers nearly all household expenditures. I show bias that results from reduced‐form systems.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Economic Papers: A journal of applied economics and policy
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
