Testing the differences in consumption patterns of one-and two-earner families

R Heijmans and G Renes

No 293079, University of Amsterdam, Actuarial Science and Econometrics Archive from University of Amsterdam, Faculty of Economics and Business

Abstract: In this paper the authors investigate whether there are any differences in consumption patterns, as given by a system of Engelcurves, of one- and two-earner families. We test for these differences under the assumption of identical and of different covariance matrices of the disturbances. We also test these assumptions. In most cases we reject the hypothesis of equal consumption patterns of one- and two-earner families. But the assumption of identical covariance matrices is rejected in all cases. We conclude that the erroneous use of this assumption can lead to wrong conclusions.

Keywords: Consumer/Household Economics; Research Methods/Statistical Methods (search for similar items in EconPapers)
Pages: 25
Date: 1984-08
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Persistent link: https://EconPapers.repec.org/RePEc:ags:amstas:293079

DOI: 10.22004/ag.econ.293079

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