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Price elasticities for disaggregated expenditures

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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," Documents de travail du Centre d'Economie de la Sorbonne 17026, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:17026
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    File URL: ftp://mse.univ-paris1.fr/pub/mse/CES2017/17026.pdf
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    Cited by:

    1. François Gardes, 2019. "The Estimation of Price Elasticities and the Value of Time in a Domestic Production Framework: an Application using French Micro-Data," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01478052, 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, 2019. "The Estimation of Price Elasticities and the Value of Time in a Domestic Production Framework: an Application using French Micro-Data," Post-Print hal-01478052, HAL.
    4. François Gardes, 2019. "The Estimation of Price Elasticities and the Value of Time in a Domestic Production Framework: an Application using French Micro-Data," PSE-Ecole d'économie de Paris (Postprint) hal-01478052, HAL.
    5. 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.
    6. 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 elasticity; Pigou law;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D1 - Microeconomics - - Household Behavior
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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