US aggregate demand for clothing and shoes: effects of non‐durable expenditures,price and demographic changes

The main objective of this study was to evaluate the effects of the changes in total non‐durables expenditures, prices and US demographics on demand for different clothing categories and shoes in a time‐series framework. The basis for the demand model was the almost ideal demand system model. Demographic variables included in the model were age distribution of US population (median age and variance) and proportion of non‐white population to the total US population. The results indicate that total non‐durable expenditures and price variables are significantly related to consumers’ non‐durable budget allocations for clothing categories and shoes. The results of the study also show that, among the demographic variables examined in the study, the median age and non‐white population were significant variables affecting US aggregate non‐durable expenditure allocation on men's and boy's clothing and shoes. All the demand elasticities with respect to total expenditures, own, cross‐price and demographics were also estimated.