This paper takes a close look at material deprivation in 27 European Union countries. Its main goal is to explore which expenditures individuals/households curtail first when facing economic difficulties. Two methodologies are applied: item response theory, a psychometric method also known as...

The focus of this Element is on the idea that choice is hierarchical so that there exists an order of acquisition of durable goods and assets as real incomes increase. Two main approaches to deriving such an order are presented, the so-called Paroush approach and Item Response Theory. An...