NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Publications by Valerie Lechene

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

Working Papers and Chapters

July 2014Using the CE to Model Household Demand
with Laura Blow, Peter Levell
in Improving the Measurement of Consumer Expenditures, Christopher Carroll, Thomas Crossley, and John Sabelhaus, editors
Using data from the US Consumer Expenditure Survey (CE) from 1998 to 2010, we estimate a demand system for non durable goods, under different assumptions regarding the behavior of households. Thanks to the unique features of the CE, which records labor supply and information on durables together with income and demand, we are able to look at how assumptions of full intertemporal separability and separability of durables from non durables impact the demand estimation. We test, and reject, the separability assumptions and show how relaxing them affects the magnitude of the estimated income and price elasticities. This exercise illustrates the importance of building on the strengths of the CE as a comprehensive source of quantified information on household behavior if it is to fulfill its goa...

Contact and additional information for this authorAll NBER papers and publicationsNBER Working Papers only

 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us