Income Effects on Services Expenditures

François Gardes and Christophe Starzec

DEMPATEM Working Papers from AIAS, Amsterdam Institute for Advanced Labour Studies

Abstract: Engel curves suffer from the fact that habit or addiction effects are not taken into account on cross sections. Also, income effects may differ between social groups, and cross-section parameters may be biased relatively to time-series estimations. We propose to estimate dynamic Engel curves on individual cross-section data using a new instrumentation of past expenditures based on cohort effects and compare the influence of income changes according to static and dynamic estimates. Finally, a domestic production model allows to calculate the opportunity cost of domestic activities and to explain the difference between the U.S. and European expenditures on services. The article uses the 1979, 1984, 1989 and 1995 Insee Family budget surveys.

Date: 2004-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www1.feb.uva.nl/aias/dempatem_WP7.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www1.feb.uva.nl:443 (No such host is known. )

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aia:dempat:wp7

Access Statistics for this paper

More papers in DEMPATEM Working Papers from AIAS, Amsterdam Institute for Advanced Labour Studies Nieuwe Prinsengracht 130, 1018 VZ Amsterdam. Contact information at EDIRC.
Bibliographic data for series maintained by Wiemer Salverda ( this e-mail address is bad, please contact ).