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Statens offentliga utredningar 2005:57

Consumer Demand and Labor Supply in
Sweden
1980-2003

Bengt Assarsson
Department of Economics
Uppsala University
Box 513,
SE-751
20 Uppsala
Sweden

E-mail:
bengt.assarsson@nek.uu.se

2004-03-11

Abstract
This paper analyses the demand for consumer goods and leisure in Sweden for the period
1980-2003.
A dynamic version of the AIDS demand system is used. An error correction model is used where a form of habit formation is applied. The results show reasonable estimates of price and income elasticities for the consumer goods. Also, the labor supply elasticity is in line with previous results using micro data.

1

Introduction

The estimation of demand elasticities has a long tradition in applied economics. During the 1970ies and 1980ies demand systems based on