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 |
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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 |