This text covers a wide range of applications using modern parametric and nonparametric econometric techniques related to the behavioural and welfare analysis of consumption. The applications measuring the cost of children, equity and poverty in Colombia are based on the theoretical developments presented in literature during the 1990's. It places special emphasis on the treatment of demographic characteristics and the interpretation of their effects both in demand and welfare analysis related to the estimation of equivalence scales, social welfare functions and micro-simulations of poverty. "The Behavioral and Welfare Analysis of Consumption" is a comprehensive and up-to-date reference intended for graduate and advanced undergraduate students interested in the applied fields of consumption economics, welfare economics, development economics and applied econometrics. The contents of the book may be of use also to institutions in the implementation of applied welfare policies of both developed and less developed countries and the analysis of household surveys in general.
Federico Perali is a Professor of Political Economy at the University of Verona, where he teaches Political Economy, Development Economics and Welfare Economics. He is also a founding member of the Center for Household, Income, Labor and Demographic Economics - CHILD, and has been a consultant for the World Bank, FAO, Unicef, the Italian Poverty Commission and the Pontifical Council for Justice and Peace.
I: Theory.- 1 A Demographically Modified Demand Model: Behavioral and Welfare Properties.- 2 Demographics and Quality: Household Production Theory and the “Repackaging Model” Revisited.- 3 Household Equivalence Scales and Interpersonal Comparisons.- II: Econometric Applications.- 4 Estimation of a Censored Demand System.- 5 Indexes of Characteristics: Income and Substitution Effects.- 6 The Cost of Children and The Distribution of Welfare.- III: Policy Applications.- 7 Microsimulations of Poverty and Inequality Using the Distribution of Welfare.- 8 Equity Versus Efficiency in Colombia During the Second Half of the 1980s.- 9 Conclusions.- Annex.- Annex: Issues in Data Management of Expenditure Surveys and Non-Parametric TOOLS.- 1. Introduction.- 2. Relevant Information about Expenditure Surveys.- 3. The Estimation of Prices.- 4. Total Expenditure versus Income.- 5. Data Description Using Non-Parametric and Semiparametric Techniques.- 5.1 Non-Parametric Densities, Kernel and Local Polynomial Regressions.- 5.2 Semiparametric Analysis.- 5.3 Non-Parametric Derivatives.- 5.4 Non-Parametric Estimation of the Rank of Demand Systems.- 6 Summary and Remarks.- Appendix: Commodity Aggregation, Demographics and Other Exogenous Information.- Selected Bibliography.- Author Index.