Modelling household consumption: a long-term forecasting approach

This paper aims at assessing the main features of the approach to personal consumption expenditure modelling developed within the Inforum multisectoral modelling. It is a complex but very flexible system for investigating and forecasting household consumption in a disaggregated framework taking into account issues such as demographic changes, heterogeneity of household characteristics and long-term dynamics which are very relevant for macroeconometric models.