Section 1: Introduction
As three advisors of CQEM, we were assigned to do some research about the total expenditures of households for the editorial staff of the journal ‘The Consumer’. We hope that with our research we can contribute to another article of ‘The Consumer‘.
The following report will try to detect the factors that determine the level of total expenditures by households (TOTEXP in unities of 1000 euro). The research is to concentrate on the total expenditures (on food plus housing plus clothing plus recreation) per family, as well as on variables that influence them (like family size, family income, and education level of the head of the family). For our research we will use a sample size of 300 Dutch households with the following characteristics. Income and expenses are on an annual base.
1. DS dummy single (=1 for a household consisting of one adult only, the respondent. The respondent might be heading a household with one or more minors. All other adults are coded DS = 0).
2. DH dummy head of household (=1 if the respondent is not the only adult in the household but is head of the household. By definition this household consists of two or more adults. Observe that DS*DH = 0).
3. DP dummy partner (=1 if the respondent is the partner of the head of the household. By definition we have DP*DH = 0 and DP*DS = 0. “Partner” is defined as being married to the head of the household. Persons cohabiting are not considered partners.)
4. DF dummy female (=1 if the family head is female).
5. WEIGHT weight of the family-head in kilograms.
6. LENGTH length of the family head in cm.
7. AGE age of the family head in years (not rounded off).
8. EDU level of education of the family head (1 = low, 5 = high).
9. WAGE hourly wages of the family head in euro.
10. HOURS weekly numbers of hours worked by the family head.
11. NKIDS number of children (< 18 years) of the...