Group Demand I: Main Results

Kenneth W. Clements (), Haiyan Liu, Marc Jim M. Mariano (), Eliyathamby A. Selvanathan (), Saroja Selvanathan () and George Verikios ()
Additional contact information
Kenneth W. Clements: University of Western Australia
Haiyan Liu: University of Western Australia
Marc Jim M. Mariano: Commonwealth Scientific and Industrial Research Organisation
Eliyathamby A. Selvanathan: Griffith University
Saroja Selvanathan: Griffith University
George Verikios: Griffith University

Chapter Chapter 8 in Short-cut Demand Elasticities and Other Convenient Approaches to Consumer Demand, 2025, pp 147-159 from Springer

Abstract: Abstract Consumers usually purchase a huge number of goods and service each year. To manage the high-dimensional choice problem, consumers often allocate income to broad groups before deciding how much to spend on individual items within each group. This is known as two-stage budgeting. This chapter introduces the utility foundations of this approach. This leads to demand equations for groups of goods and services, as well as conditional demands for within-group allocations. The theory is illustrated with an econometric application to the demand for beer, wine, and spirits.

Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-981-96-3588-7_8

Ordering information: This item can be ordered from
http://www.springer.com/9789819635887

DOI: 10.1007/978-981-96-3588-7_8

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().