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Home Research areas Consumer behaviour and indirect taxation Analysis of consumer demand

Analysis of consumer demand

Research in this area involves modelling how households and individuals choose to allocate their expenditure across goods. Work includes modelling how sensitive choices are to changes in prices, incomes and advertising and how this varies across different types of people, as well as revealed preference analysis, which seeks to explore whether data on consumer choices are consistent with specific economic models.

Selected highlights

Journal article | Econometrica
semi_nonparametric_iv_estimation_of_shape_invariant_engel_curves
This paper studies a shape-invariant Engel curve system with endogenous total expenditure, in which the shape-invariant specification involves a common shift parameter for each demographic group in a pooled system of nonparametric Engel curves.
Journal article | American Economic Review
how_demanding_is_the_revealed_preference_approach_to_demand
This paper examines the restrictions of revealed preference methods using an axiomatic characterization of a measure of predictive success..
Journal article | Review of Economics and Statistics
quadratic_engel_curves_welfare_measurement_and_consumer_demand
Journal article | Econometrica
nonparametric_engel_curves_and_revealed_preference
This paper applies revealed preference theory to the nonparametric statistical analysis of consumer demand.
Journal article | Econometrica
best_nonparametric_bounds_on_demand_responses
This paper uses revealed preference inequalities to provide tight nonparametric bounds on consumer responses to price changes.
Journal article | Review of Economic Studies
There are growing calls to restrict advertising of junk foods. Whether such a move will improve diet quality will depend on how advertising shifts consumer demands and how firms respond. We study an important and typical junk food market – the potato chips market.

Contacts

Contact IFS on 020 7291 4800 or mailbox@ifs.org.uk

Peter Levell
Senior Research Economist
Martin O'Connell
Deputy Research Director
Kate Smith
Associate Director
Rebekah Stroud
Research Economist