The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Nov, 1993, Volume 61, Issue 6
https://doi.org/0012-9682(199311)61:6<1395:EFPDAL>2.0.CO;2-7
p. 1395-1422
Erik Biorn, Jorgen Aasness, Terje Skjerpen
A system of consumer expenditure functions is estimated from Norwegian household budget data. Specific features of the approach are: (i) Panel data from individual households are used, which offer far richer opportunities for identification, estimation, and testing than cross section data. (ii) Measurement errors are carefully modelled. Total consumption expenditure is modelled as a latent variable; purchase expenditures on different goods and two income measures are used as indicators of this basic latent variable. The usual assumption of no measurement error in total expenditure is clearly rejected. (iii) The distribution of latent total expenditure across households, and its evolution over time, is estimated and important properties tested. (iv) The distribution of individual differences in preferences, represented by individual time invariant latent variables, are modelled, estimated, and tested. (v) We test the hypothesis that preferences are uncorrelated with total consumption expenditure, which is basic to virtually all cross section studies of consumer demand functions.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
