Abstract
I take particular pleasure in celebrating through the theme of this paper Cramer’s contributions to the study of household behaviour. Of these, I might specifically mention his 1957 paper which contains the first exposition of the neoclassical theory of the demand for durables, his 1962 book on the ownership of durables and his 1969 text. Particularly memorable for me from the latter’s very nice exposition of Engel curves is his clear treatment of the identification problem in the Prais-Houthakker (1955) method of constructing household equivalence scales from Engel curves incorporating household composition effects. Though no great issues arise in the treatment of household composition effects in the Engel curves which I estimate below, I hope that he will enjoy the paradoxes of the paper that follows.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Bibliography
Ando A and Modigliani F. 1963. The ‘life-cycle’ hypothesis of saving: aggregate implications and tests. American Economic Review, 53: 55–84.
Blackorby C, Primont D and Russell RR. 1978. Duality, separability and functional structure: theory and economic applications. New York: North-Holland Publishing Co.
Cramer JS. 1957. A dynamic approach to the theory of consumer demand. Review of Economic Studies, 24: 73–86.
Cramer JS. 1962. The ownership of major consumer durables. Cambridge: Cambridge University Press.
Cramer JS. 1969. Empirical econometrics. Amsterdam: North-Holland Publishing Co.
Deaton A and Muellbauer J. 1980. Economics and consumer behaviour. New York: Cambridge University Press.
Deaton A and Muellbauer J. 1980. An almost ideal demand system. American Economic Review, 70: 312–326.
Deaton A. 1985. Life-cycle models of consumption: is the evidence consistent with the theory? Invited paper for the Fifth World Congress of the Econometric Society, Cambridge, Mass.
Gorman WM. 1959. Separable utility and aggregation, Econometrica, 27: 469–481.
Hall RE. 1985. Real interest and consumption. NBER working paper 1694, August 1985.
Houthakker HS. 1957. An international comparison of household expenditure patterns commemorating the centenary of Engel’s law. Econometrica, 25: 531–551.
Jorgenson, DW and Lau LJ. 1975. The structure of consumer preferences. The Annals of Economic and Social Measurement, 4: 49–101.
Kay JA, Keen MJ and Morris CN. 1982. Consumption, income and the interpretation of household expenditure data. Unpublished ms., Institute for Fiscal Studies.
Leser CEV. 1963. Forms of Engel functions. Econometrica, 31: 694–703,
Liviatan N, 1961. Errors in variables and Engel curve analysis. Econometrica, 29: 336–362.
Modigliani F and Brumberg R. 1955. Utility analysis and the consumption function: an interpretation of cross-section data, in: Post Keynesian Economics, edited by Kurihara KD. London: George Allen & Unwin.
Muellbauer J. 1975. Aggregation, income distribution and consumer demand. Review of Economic Studies, 62: 525–543.
Muellbauer J. 1976. Community preferences and the representative consumer. Econometrica, 44: 979–999.
Muellbauer J. 1986. Uncertainty, liquidity constraints and aggregation in the consumption function. Ms. Nuffield College, February 1986.
Prais SJ and Houthakker HS. 1955. The analysis of family budgets. Cambridge: Cambridge University Press.
Working H. 1943. Statistical laws of family expenditure. Journal of the American Statistical Association, 38, 43–56.
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 1987 Martinus Nijhoff Publishers, Dordrecht
About this chapter
Cite this chapter
Muellbauer, J. (1987). Estimating the intertemporal elasticity of substitution for consumption from household budget data. In: Heijmans, R., Neudecker, H. (eds) The Practice of Econometrics. International Studies in Economics and Econometrics, vol 15. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-3591-4_4
Download citation
DOI: https://doi.org/10.1007/978-94-009-3591-4_4
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-8106-1
Online ISBN: 978-94-009-3591-4
eBook Packages: Springer Book Archive