An Almost Ideal Dynamic Demand System Applied to Italian Households

This study finds some evidence of a modification in the structure of expenditure by Italian households between the seventies and the eighties with regard to income elasticities. Both “functional” and “durability” disaggregations are used. The first shows a modification in the standard of living, while the second points towards a cyclical pattern of durables and semidurables. Price elasticities, on the contrary, prove rather insignificant and without any appreciable modification.