The Structure of Household Consumption in Finland, 1966-1990

Risto Sullström and Ilpo Suoniemi

No 27, Research Reports from VATT Institute for Economic Research

Abstract: The structure of household consumption is examined in nine component categories using data from six Household Budget Surveys, in 1966-1990. The study discusses and presents econometric methods (EQML) to estimate demand models at the micro (household) level. Methods solve for an 'errors-in-variables' problem in a novel way and allow for heteroskedasticity in the errors. Budget share equations which are based on a flexible functional form (QAIDS) are used to analyse the age profiles and Engel curves in consumption. Similarly, the life-cycle profiles and cohort paths in consumption and the effects of household composition are examined. The results show a useful decomposition of the above demographic effects and the effects due to change in prices and improved living standards on the evolution of consumption. In the final part of the study estimates for the price and expenditure elasticities of demand are presented both including and not including the acquisition of durable goods.

Keywords: Microeconometrics, heteroskedasticity, errors-in-variables, household consumption, allocation models, Engel curves, age profiles, life-cycle effects, elasticities., Economic growth, Taloudellinen kasvu, Taxation and Social Transfers, Julkisen talouden rahoitus ja tulonsiirrot, C100 - Econometric and Statistical Methods: General, D100 - Household Behavior: General, E210 - Macroeconomics: Consumption; Saving, R210 - Urban, Rural, and Regional Economics: Housing Demand, (search for similar items in EconPapers)
Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.doria.fi/handle/10024/148586

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:fer:resrep:27

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Research Reports from VATT Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Anita Niskanen ().