Searching for different levels of households welfare by the fuzzy methodology

Abstract

In this paper, the methodology of fuzzy set is used to analyse the italian Households Budgets of 1992. Two fuzzy-cluster methods are used: the first one, for searching those variables (the budgets expenses) more representative of the households welfare level and more connected with their social and demographics characteristics; the second one, for clustering the original data in some homogeneous groups of consumption behavior, The results can be related to those of other studies that utilize the standard econometric method of analysis: in particular, a welfare index is identified to form five homogeneous groups of households.