Abstract
The objective of this paper is to analyze the consumption patterns of the Japanese one-person households in the years between 2000 and 2005. A Linear Approximate Almost Ideal Demand System (LAIDS) model was used for estimation. Also used for the analysis was the quarterly all household data by sex and age groups compiled in the Annual Report on the Family Income and Expenditure Survey (2000-2005). As described below, the age groups over 60 show consumption patterns that are different from those of the other age groups. Regardless of the difference of age groups, the gender difference is evident in their budget share in nearly all items. Noteworthy are the two items' budget share of “eating-out” and “transportation & communication,” where males tended to be higher than females. On the other hand, in the two items' budget share of “housing expenses” and “clothes & footwear,” females tended to be higher than their male counterparts. As for the age groups of over 60, males' budget share were higher than their female counterparts in “eating-out” and “housing expenses.” The income elasticity estimates indicate that “eating-out” is a necessity for the age groups below 34, and it is a luxury for those between 35 and 59. In other words, “eating-out” is a main food consumption pattern for those below 34. “Housing expenses” is a necessity for both those below 34 and 35-59, but there is no interaction seen between income and expenses for those over the age of 60 probably because the rate of those owning their own dwelling is high. The own price elasticity estimates show that “eating-out” for those below 34, “others” for 35-59 and “eating at home” for those over 60 are elastic. Furthermore, the cross price elasticity estimates show that many items are independent for those below 34. However, nearly all items are substitution or complementary for those over 60, because with low income, they are bounded to try to make both ends meet.
