DEMOS is a complex module focusing on income and consumption structures of different socio-economic households. The model provides the opportunity to analyse economic and social effects of changes in the household or income structure.

The main data source is the Household Budget Survey published by the German Federal Statistical Office. The level of detail comprises 70 consumption purposes (COICOP) and 42 sources of income. The household types are differentiated by social status of the main income earner linked with household size.

Changes in income or the household structure affect the households’ consumption expenditures. The results can be integrated in the macro-econometric model INFORGE (inter-industry forecasting Germany) to show and quantify the economic consequences of socio-economic changes.

Thus, DEMOS offers the analysis of a range of different scenarios, such as the effect of demographic and socio-political change or politically induced changes in taxes and income.