Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/103459
Authors: 
Koulovatianos, Christos
Schröder, Carsten
Schmidt, Ulrich
Year of Publication: 
2014
Series/Report no.: 
CFS Working Paper Series 484
Abstract: 
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.
Subjects: 
Linear Aggregation
Dynamic Representative Consumer
Household-Size Economies
Equivalent Incomes
Survey Method
JEL: 
C42
E21
D12
E01
D11
D91
D31
I32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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