U.S. aggregate demand for clothing and shoes, 1929-1994: Effects of changes in price, nondurables expenditures, and demographics

1U.S. Aggregate Demand for Clothing and Shoes, 1929-1994:Effects of Changes in Price, Nondurables Expenditures, and DemographicsbyKisung KimDr. Marjorie J. T. Norton, ChairClothing and Textiles(ABSTRACT)The main objective of this study was to evaluate the effects of the changes in totalnondurables expenditures, prices, and demographics on the U.S. aggregate demand forclothing categories and shoes. In particular, this study focused on identifying andparameterizing the effects of such changes. To this purpose, a demand system for twoclothing categories, shoes, and other nondurable commodities for the U.S. was estimatedusing aggregate time-series data sets (1929-1994), and a second-stage budgeting modelwas developed and estimated. The basis for the demand model was the Almost IdealDemand System model, which was modified to account for the demographic effects.Demographic variables included in the final model were age distribution of the U.S.population (median age and variance), proportion of non-White population in the totalU.S. population, and labor force participation rate of U.S. women. The main data sourceswere documents published by the Bureau of the Census, Bureau of Labor Statistics, andBureau of Economic Analysis in the U.S. Department of Commerce.The results indicate that the total nondurables expenditures is a significantvariable in determining consumers nondurables expenditure allocation on clothingcategories and shoes. The estimated total expenditure elasticities suggest that the clothingcategories and shoes are expenditure elastic, ranging from 1.1019 to 1.4944. Most ownand cross prices appear to be significant variables in determining the consumer budgetallocations for clothing categories and shoes. The median age and non-White populationvariables evidence as significant variables that affect the U.S. aggregate nondurables