Aggregate Consumer Behavior and Household Equivalence Scales |
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Authors: | Dale W. Jorgenson Daniel T. Slesnick |
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Affiliation: | 1. Department of Economics , Harvard University , Cambridge , MA , 02138;2. Department of Economics , University of Texas , Austin , TX , 78712 |
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Abstract: | This article presents estimates of household equivalence scales, broken down by demographic characteristics, of U.S. households. Separate estimates are given by family size, age of head, region, race, and urban versus rural residence. Commodity-specific scales are presented for five separate commodity groups—energy, food, consumer goods, capital services, and other services. The estimates are obtained from an econometric model of aggregate consumer behavior. The parameters of this model are estimated by combining aggregate time series and individual cross-section data. |
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Keywords: | Translog indirect utility function Exact aggregation Nonlinear three-stage least squares Nonlinear programming Personal consumption expenditures |
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