Engel Functions, Panel Data, and Latent Variables

Jorgen Aasness, Erik Biorn and Terje Skjerpen

Econometrica, 1993, vol. 61, issue 6, 1395-1422

Abstract: Systems of consumer expenditure functions are estimated from Norwegian household panel data. Total consumption expenditure is modeled as a latent variable, as indicators of it are purchase expenditures on different goods and two income measures. The usual assumption of no measurement error in total expenditure is clearly rejected while a parsimonious alternative is not. The authors test hypotheses regarding the distribution of measurement errors, the evolution of the distribution of latent total expenditure across households, the distribution of individual differences in preferences, and the possible correlation between preferences and latent total expenditure. Copyright 1993 by The Econometric Society.

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
http://links.jstor.org/sici?sici=0012-9682%2819931 ... O%3B2-7&origin=repec full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

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:ecm:emetrp:v:61:y:1993:i:6:p:1395-1422

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().