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If you want to know about how the consumption and savings decisions of households evolve over time--for example, it may take several years for a household to adjust fully to a sharp change in prices or incomes--it seems as if you need to follow the same group of households over time. Another paper found that the costs of expenditures on children are about 30-40% of expenditures on adults--which implies that when comparing countries with higher proportions of children to countries with lower proportions of children, you need to avoid comparisons that just divide economic output by the total number of people. Deaton, working with John Muellbauer, developed a more flexible way of looking at patterns of demand for the wide range of goods and services that allowed there to be some flexibility in patterns of household demand (for example, based on the number of people in a household and how many of them were children).

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