Biases in consumer elasticities based on micro and aggregate data: an integrated framework and empirical evaluation
Author
Abstract
Suggested Citation
DOI: 10.1007/s00181-015-0939-6
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Lewbel, Arthur, 1990. "Income distribution movements and aggregate money illusion," Journal of Econometrics, Elsevier, vol. 43(1-2), pages 35-42.
- Blundell, Richard & Meghir, Costas & Weber, Guglielmo, 1993.
"Aggregation and consumer behaviour: some recent results,"
Ricerche Economiche, Elsevier, vol. 47(3), pages 235-252, September.
- Richard Blundell & Costas Meghir & Guglielmo Weber, 1993. "Aggregation and consumer behaviour: some recent results," IFS Working Papers W93/06, Institute for Fiscal Studies.
- Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1975. "Transcendental Logarithmic Utility Functions," American Economic Review, American Economic Association, vol. 65(3), pages 367-383, June.
- Frank Denton & Dean Mountain, 2004.
"Aggregation effects on price and expenditure elasticities in a quadratic almost ideal demand system,"
Canadian Journal of Economics, Canadian Economics Association, vol. 37(3), pages 613-628, August.
- Frank T. Denton & Dean C. Mountain, 2002. "Aggregation Effects on Price and Expenditure Elasticities in a Quadratic Almost Ideal Demand System," Quantitative Studies in Economics and Population Research Reports 374, McMaster University.
- repec:bla:revinw:v:35:y:1989:i:2:p:107-31 is not listed on IDEAS
- Howe, Howard & Pollak, Robert A & Wales, Terence J, 1979. "Theory and Time Series Estimation of the Quadratic Expenditure System," Econometrica, Econometric Society, vol. 47(5), pages 1231-1247, September.
- Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-359, June.
- Denton, Frank T. & Mountain, Dean C., 2001. "Income distribution and aggregation/disaggregation biases in the measurement of consumer demand elasticities," Economics Letters, Elsevier, vol. 73(1), pages 21-28, October.
- Slottje, Daniel, 2008. "Estimating demand systems and measuring consumer preferences," Journal of Econometrics, Elsevier, vol. 147(2), pages 207-209, December.
- Stoker, Thomas M, 1986. "Simple Tests of Distributional Effects on Macroeconomic Equations," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 763-795, August.
- Stoker, Thomas M, 1984. "Completeness, Distribution Restrictions, and the Form of Aggregate Functions," Econometrica, Econometric Society, vol. 52(4), pages 887-907, July.
- Arthur Lewbel, 2003.
"A rational rank four demand system,"
Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(2), pages 127-135.
- Arthur Lewbel, 2000. "A Rational Rank Four Demand System," Boston College Working Papers in Economics 463, Boston College Department of Economics, revised 04 Apr 2003.
- James Banks & Richard Blundell & Arthur Lewbel, 1997. "Quadratic Engel Curves And Consumer Demand," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 527-539, November.
- Blundell, Richard & Pashardes, Panos & Weber, Guglielmo, 1993. "What Do We Learn About Consumer Demand Patterns from Micro Data?," American Economic Review, American Economic Association, vol. 83(3), pages 570-597, June.
- Frank T. Denton & Dean C. Mountain, 2004. "Aggregation effects on price and expenditure elasticities in a quadratic almost ideal demand system," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(3), pages 613-628, August.
- Terence J. Wales, 1971. "A Generalized Linear Expenditure Model of the Demand for Non-durable Goods in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 4(4), pages 471-484, November.
- Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-326, June.
- Mchel O'Higgins & Guenther Schmaus & Geofrey Stephenson, 1989. "Income Distribution And Redistribution: A Microdata Analysis For Seven Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 35(2), pages 107-131, June.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Olabisi, Michael & Tschirley, David L. & Nyange, David & Awokuse, Titus, 2018. "The Challenge of Substituting Sunflower Oil for Imported Palm Oil: Evidence from Tanzania," Feed the Future Innovation Lab for Food Security Policy Research Papers 275677, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
- Núñez-Sánchez, Ramón & Otoya-Chavarría, Marco & Soberón, Alexandra, 2024. "Price and budget elasticities under utility poverty policies in Spain," Utilities Policy, Elsevier, vol. 88(C).
- Olabisi, Michael & Tschirley, David L. & Nyange, David & Awokuse, Titus, 2019.
"Energy demand substitution from biomass to imported kerosene: Evidence from Tanzania,"
Energy Policy, Elsevier, vol. 130(C), pages 243-252.
- Olabisi, Michael & Tschirley, David L. & Nyange, David & Awokuse, Titus, 2018. "Energy Demand Substitution from Biomass to Imported Kerosene: Evidence from Tanzania," Feed the Future Innovation Lab for Food Security Policy Research Papers 279913, Michigan State University, Department of Agricultural, Food, and Resource Economics, Feed the Future Innovation Lab for Food Security (FSP).
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Frank T. Denton & Dean C. Mountain, 2011. "Aggregation and Other Biases in the Calculation of Consumer Elasticities for Models of Arbitrary Rank," Quantitative Studies in Economics and Population Research Reports 447, McMaster University.
- Frank Denton & Dean Mountain, 2014. "The implications of mean scaling for the calculation of aggregate consumer elasticities," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 12(3), pages 297-314, September.
- Denton, Frank T. & Mountain, Dean C., 2011. "Exploring the effects of aggregation error in the estimation of consumer demand elasticities," Economic Modelling, Elsevier, vol. 28(4), pages 1747-1755, July.
- Frank T. Denton & Dean C. Mountain, 2007. "Exploring the Effects of Aggregation Error in the Estimation of Consumer Demand Elasticities," Social and Economic Dimensions of an Aging Population Research Papers 226, McMaster University.
- Frank Denton & Dean Mountain, 2004.
"Aggregation effects on price and expenditure elasticities in a quadratic almost ideal demand system,"
Canadian Journal of Economics, Canadian Economics Association, vol. 37(3), pages 613-628, August.
- Frank T. Denton & Dean C. Mountain, 2002. "Aggregation Effects on Price and Expenditure Elasticities in a Quadratic Almost Ideal Demand System," Quantitative Studies in Economics and Population Research Reports 374, McMaster University.
- Frank T. Denton & Dean C. Mountain & Byron G Spencer, 2006.
"Errors of aggregation and errors of specification in a consumer demand model: a theoretical note,"
Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(4), pages 1398-1407, November.
- Frank T. Denton & Dean C. Mountain & Byron G Spencer, 2006. "Errors of aggregation and errors of specification in a consumer demand model: a theoretical note," Canadian Journal of Economics, Canadian Economics Association, vol. 39(4), pages 1398-1407, November.
- Frank T. Denton & Dean C. Mountain, 2004. "Aggregation effects on price and expenditure elasticities in a quadratic almost ideal demand system," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 37(3), pages 613-628, August.
- Bente Halvorsen, 2006. "When can micro properties be used to predict aggregate demand?," Discussion Papers 452, Statistics Norway, Research Department.
- Lyssiotou, Panayiota & Pashardes, Panos & Stengos, Thanasis, 2002.
"Nesting quadratic logarithmic demand systems,"
Economics Letters, Elsevier, vol. 76(3), pages 369-374, August.
- Panayiota Lyssiotou & Panos Pashardes & Thanasis Stengos, 2001. "Nesting Quadratic Logarithmic Demand Systems," University of Cyprus Working Papers in Economics 0201, University of Cyprus Department of Economics.
- LaFrance, Jeffrey T., 2008.
"The structure of US food demand,"
Journal of Econometrics, Elsevier, vol. 147(2), pages 336-349, December.
- LaFrance, Jeffrey, 1998. "The Structure of U.S. Food Demand," CUDARE Working Papers 198672, University of California, Berkeley, Department of Agricultural and Resource Economics.
- Jeffrey LaFrance, 2008. "The Structure of US Food Demand," Working Papers 2008-10, School of Economic Sciences, Washington State University.
- Bente Halvorsen & Bodil M. Larsen, 2008. "The Role of Heterogeneous Demand for Temporal and Structural Aggregation Bias," Discussion Papers 537, Statistics Norway, Research Department.
- Simona Bigerna & Carlo Andrea Bollino & Maria Chiara D’Errico, 2020. "A general expenditure system for estimation of consumer demand functions," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(3), pages 1071-1088, October.
- Knobel, Alexander (Кнобель, Александр) & Chentsov, Alexander (Ченцов, Александр), 2018. "The Impact of Exchange Rates and Their Volatility on Russia's Foreign Trade, Taking into Account its Membership in EAEU [Влияние Обменных Курсов И Их Волатильности На Внешнюю Торговлю России С Учет," Working Papers 061824, Russian Presidential Academy of National Economy and Public Administration.
- Giorgio Fagiolo, 2001. "Engel Curves Specification in an Artificial Model of Consumption Dynamics with Socially Evolving Preferences," LEM Papers Series 2001/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
- Chen, Shu-Ling & Chern, Wen S. & Lin, Yi-Ru & Liu, Kang Ernest, 2015. "Effects of food safety and health risk information on demand for food in Taiwan," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205452, Agricultural and Applied Economics Association.
- Diakité, Zakary, 2023. "Estimating Demand for Lamb, Beef, Pork, and Poultry in Canada," MPRA Paper 120115, University Library of Munich, Germany.
- Xavier Labandeira & José M. Labeaga & Miguel RodrÃguez, 2006.
"A Residential Energy Demand System for Spain,"
The Energy Journal, , vol. 27(2), pages 87-112, April.
- Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2006. "A Residential Energy Demand System for Spain," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 87-112.
- Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, "undated". "A Residential Energy Demand System for Spain," Working Papers 2005-04, FEDEA.
- Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2005. "A Residential Energy Demand System for Spain," Econometrics 0503005, University Library of Munich, Germany.
- Xavier Labandeira & José M. Labeaga & Miguel Rodríguez, 2005. "A Residential Energy Demand System for Spain," Working Papers 0501, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Paula Carvalho Pereda & Denisard Cneio de Oliveira Alves, 2008. "Demand for Nutrients in Brazil," Anais do XXXVI Encontro Nacional de Economia [Proceedings of the 36th Brazilian Economics Meeting] 200807211136590, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
- Toshinobu Matsuda, 2006.
"A trigonometric flexible consumer demand system,"
Canadian Journal of Economics, Canadian Economics Association, vol. 39(1), pages 145-162, February.
- Toshinobu Matsuda, 2006. "A trigonometric flexible consumer demand system," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(1), pages 145-162, February.
- Douglas Fisher & Adrian R. Fleissig & Apostolos Serletis, 2006.
"An Empirical Comparison of Flexible Demand System Functional Forms,"
World Scientific Book Chapters, in: Money And The Economy, chapter 13, pages 247-277,
World Scientific Publishing Co. Pte. Ltd..
- Douglas Fisher & Adrian R. Fleissig & Apostolos Serletis, 2001. "An empirical comparison of flexible demand system functional forms," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(1), pages 59-80.
More about this item
Keywords
Aggregate consumer elasticities; Aggregation bias; Consumer demand; Income inequality; Income distribution; Model rank;All these keywords.
JEL classification:
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:empeco:v:50:y:2016:i:2:d:10.1007_s00181-015-0939-6. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.