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SSRN Electronic Journal
Article . 2010 . Peer-reviewed
Data sources: Crossref
EconStor
Research . 2010
Data sources: EconStor
EconStor
Research . 2010
Data sources: EconStor
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Confronting the Representative Consumer with Household-Size Heterogeneity

Authors: Christos Koulovatianos; Carsten Schröder; Ulrich Schmidt;

Confronting the Representative Consumer with Household-Size Heterogeneity

Abstract

Much analysis in macroeconomics empirically addresses economy-wide incentives behind consumer/investment choices by using insights from the way a single representative household would behave. Heterogeneity at the micro level can jeopardize attempts to back up the representative consumer construct with microfoundations. One complex aspect of micro-level heterogeneity is household size, as individuals living in multi-member households have the potential to share goods within the household, benefiting from household-size economies. Theoretically, we show that validating the role of a representative consumer would require that the way individuals benefit from intra-household sharing is strictly aligned across the rich and the poor: once expenditures for subsistence needs are subtracted from disposable household income, household-size economies the remainder (discretionary) household incomes entail must be the same across the rich and the poor. We have designed a survey method that allows the testing of this stringent property of intra-household sharing and find that it holds.

Country
Luxembourg
Keywords

Survey Method, SurveyMethod, Quantitative methods in economics & management, Equivalent Expenditures, Méthodes quantitatives en économie & gestion, Haushaltsökonomik, Economie générale & histoire de la pensée économique, D91, D12, Konsumtheorie, Gesamtwirtschaftlicher Konsum, I32, Sciences économiques & de gestion, D31, D11, Business & economic sciences, ddc:330, Linear Aggregation, Equivalent Expenditures, Survey Method, Household-Size Economies, Equivalent, Befragung, Linear Aggregation, xpenditures, Linear Aggregation, Dynamic Representative Consumer, Household-Size Economies, Equivalent Income, Survey Method, Verbraucherausgaben, Linear Aggregation; Equivalent Expenditures; Survey Method; Household-Size Economies;, General economics & history of economic thought, E01, C42, Household-Size Economies, Theorie, E21, jel: jel:C42, jel: jel:E21, jel: jel:E01, jel: jel:E1, jel: jel:D91, jel: jel:D11, jel: jel:D12, jel: jel:D31, jel: jel:I32

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
bronze