Consumer behaviour analysis for luxury goods: a technical note for empirical studies/
Moral-Arce, Ignacio
Consumer behaviour analysis for luxury goods: a technical note for empirical studies/ created by Ignacio Moral-Arce, Stefan Sperlich and Juan M. Rodriguez-Póo - Applied economics letters Volume 20, number 4 .
Today, many econometric tools are provided for studying consumer expenditures. Less attention has been paid to the fact that, when analysing expenditures for superior goods, these tools have to be adapted to some particularities that have a serious impact on the estimation outcome. First, the considered data, in our case household expenditures for jewellery in Spain, exhibit a strong censoring that must not be ignored. Second, our confidence bands show serious nonlinearities for basically all continuous covariates. Finally, it turns out that especially in the case of luxury goods, one has to control for endogeneity of the covariate ‘total expenditure’.
13504851
Consumer expenditures--Semiparametric censored regression--Superior goods
HB1.A666 APP
Consumer behaviour analysis for luxury goods: a technical note for empirical studies/ created by Ignacio Moral-Arce, Stefan Sperlich and Juan M. Rodriguez-Póo - Applied economics letters Volume 20, number 4 .
Today, many econometric tools are provided for studying consumer expenditures. Less attention has been paid to the fact that, when analysing expenditures for superior goods, these tools have to be adapted to some particularities that have a serious impact on the estimation outcome. First, the considered data, in our case household expenditures for jewellery in Spain, exhibit a strong censoring that must not be ignored. Second, our confidence bands show serious nonlinearities for basically all continuous covariates. Finally, it turns out that especially in the case of luxury goods, one has to control for endogeneity of the covariate ‘total expenditure’.
13504851
Consumer expenditures--Semiparametric censored regression--Superior goods
HB1.A666 APP