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Price elasticities for disaggregated expenditures

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  • François Gardes

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

The relation between price elasticities computed at different levels of aggregation is a prominent question in the evaluation of price effects in the empirical literature on households' consumption, production or international trade. We propose to model it under a strong separability assumption in order to estimate price elasticities at a disaggregated level when only price aggregates are available in the dataset. The estimation of price elasticities for aggregates consumptions uses an original domestic production model combining monetary expenditures and time uses for aggregate activities in order to calculate full prices of these aggregates. The method is applied for food expenditures on surveys of two different countries, France and Burkina Faso.

Suggested Citation

  • François Gardes, 2017. "Price elasticities for disaggregated expenditures," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01535161, HAL.
    • Handle: RePEc:hal:cesptp:halshs-01535161
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01535161
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    Cited by:

    1. François Gardes & Noël Thiombiano, 2017. "The value of time and expenditures of rural households in Burkina Faso: a domestic production framework," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01535172, HAL.
    2. François Gardes & Noël Thiombiano, 2017. "The value of time and expenditures of rural households in Burkina Faso: a domestic production framework," Post-Print halshs-01535172, HAL.
    3. François Gardes & Noël Thiombiano, 2017. "The value of time and expenditures of rural households in Burkina Faso: a domestic production framework," Documents de travail du Centre d'Economie de la Sorbonne 17027, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

    More about this item

    Keywords

    domestic production; full price; price elasticity; Pigou law; production domestique; prix complet; élasticité-prix; loi de Pigou;
    All these keywords.

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