### Abstract

Language | English |
---|---|

Pages | 56-75 |

Number of pages | 20 |

Journal | International Journal of Microsimulation |

Volume | 6 |

Issue number | 2 |

Publication status | Published - 2013 |

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### Keywords

- microsimulation
- household expenditure
- NetLogo

### Cite this

*International Journal of Microsimulation*,

*6*(2), 56-75.

}

*International Journal of Microsimulation*, vol. 6, no. 2, pp. 56-75.

**Modelling household spending using a random assignment scheme.** / Lawson, Tony.

Research output: Contribution to journal › Article

TY - JOUR

T1 - Modelling household spending using a random assignment scheme

AU - Lawson, Tony

PY - 2013

Y1 - 2013

N2 - Applied demand analysis is usually done by specifying some kind of econometric equation but there are some difficulties associated with this approach. These include the problem of modelling at a highly disaggregated level and the amount of data needed to estimate the parameters for the equations. This paper examines the use of what are known as random assignment schemes as a way to model household expenditure. This approach is based on the idea of predicting the behavioural response of a microsimulation unit by finding a donor, which is in some sense similar to the receiving unit. The paper begins with a brief review of econometric modelling. It then introduces the principles of random assignment schemes. These are expanded upon in an illustrative example to model the effect of changes in the level of income on household expenditure patterns. The model is then used as a platform to show how the random assignment scheme can be used to model a large number of goods, at the level of individual households.

AB - Applied demand analysis is usually done by specifying some kind of econometric equation but there are some difficulties associated with this approach. These include the problem of modelling at a highly disaggregated level and the amount of data needed to estimate the parameters for the equations. This paper examines the use of what are known as random assignment schemes as a way to model household expenditure. This approach is based on the idea of predicting the behavioural response of a microsimulation unit by finding a donor, which is in some sense similar to the receiving unit. The paper begins with a brief review of econometric modelling. It then introduces the principles of random assignment schemes. These are expanded upon in an illustrative example to model the effect of changes in the level of income on household expenditure patterns. The model is then used as a platform to show how the random assignment scheme can be used to model a large number of goods, at the level of individual households.

KW - microsimulation

KW - household expenditure

KW - NetLogo

UR - http://www.microsimulation.org/IJM/V6_2/3_IJM_6_2_2013_Lawson.pdf

M3 - Article

VL - 6

SP - 56

EP - 75

JO - International Journal of Microsimulation

T2 - International Journal of Microsimulation

JF - International Journal of Microsimulation

SN - 1747-5864

IS - 2

ER -