Standard of Living of Households. The influence of Second-Hand Markets
This paper investigates the influences of second-hand markets on the standard of living of households in different countries. Using data from Living Standard Measurement Surveys, second-hand prices of refrigerators and television are calculated for seven countries with different levels of development. The indicator for level of development used in the multi-level regressions is the percentage of households possessing a refrigerator or a television. The analysis shows that second-hand prices of televisions and refrigerators differ for different levels of development. In less developed countries, these prices decrease at a slower rate than in more developed countries. This means that second-hand prices are higher in less developed countries. Therefore, households in poor countries have less possibility to satisfy their basic material needs, and thus have a disadvantage compared to equally poor households in wealthy countries.
Faculteit der Managementwetenschappen