A Comparison of Household Budget Allocation Patterns Between Hispanic Americans and Non-Hispanic White Americans

The budget allocation patterns of Hispanic versus non-Hispanic White households are examined. Annual household expenditure data from 1980 to 1992 are constructed from the interview component of the Consumer Expenditure Survey (1980–1992), the Consumer Price Index (1980–1992), and the American Chamber of Commerce Researchers Association (ACCRA) Cost of Living Index (1990). The sample includes 588 Hispanic and 8,444 non-Hispanic White households. A Linear Approximation of the Almost Ideal Demand System with 23 demographic variables is estimated. Findings show that holding other things equal, compared to non-Hispanic White households, Hispanic households allocate significantly more of their budget to food at home, shelter, and apparel and significantly less to food away from home, entertainment, education, health care, and tobacco.