Do demographics prevent consumer aggregates from reflecting micro-level preferences?
- Most simulated micro-founded macro models use solely consumer-demand aggregates in order to estimate deep economy-wide preference parameters, which are useful for policy evaluation. The underlying demand-aggregation properties that this approach requires, should be easy to empirically disprove: since household-consumption choices differ for households with more members, aggregation can be rejected if appropriate data violate an affine equation regarding how much individuals benefit from within-household sharing of goods. We develop a survey method that tests the validity of this equation, without utility-estimation restrictions via models. Surprisingly, in six countries, this equation is not rejected, lending support to using consumer-demand aggregates.
| Author: | Christos Koulovatianos, Carsten Schröder, Ulrich Schmidt |
|---|---|
| URN: | urn:nbn:de:hebis:30:3-353078 |
| URL: | http://ssrn.com/abstract=2517233 |
| Parent Title (English): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 484 |
| Series (Serial Number): | CFS working paper series (484) |
| Publisher: | Center for Financial Studies |
| Place of publication: | Frankfurt, M. |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2014 |
| Year of first Publication: | 2014 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2014/11/03 |
| Tag: | Dynamic Representative Consumer; Equivalent Incomes; Household-Size Economies; Linear Aggregation; Survey Method |
| Issue: | September 17, 2014 |
| Page Number: | 94 |
| HeBIS-PPN: | 351158995 |
| Institutes: | Wirtschaftswissenschaften / Wirtschaftswissenschaften |
| Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) | |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| JEL-Classification: | C Mathematical and Quantitative Methods / C4 Econometric and Statistical Methods: Special Topics / C42 Classificaton Discontinued 2008. See C83. |
| Sammlungen: | Universitätspublikationen |
| Licence (German): |  Deutsches Urheberrecht |
