1,146
Views
0
CrossRef citations to date
0
Altmetric
Original Articles

Consumer behaviour analysis for luxury goods: a technical note for empirical studies

, &
Pages 358-363 | Published online: 16 Jul 2012
 

Abstract

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’.

JEL Classification:

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.