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Income and price elasticities of demand in South Africa: An application of the linear expenditure system

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  • Rulof Burger
  • Wicus Coetzee
  • Friedrich Kreuser
  • Neil Rankin

Abstract

This paper investigates the expenditure patterns of South African households using detailed cross-sectional expenditure and price data. Linear expenditure system (LES) parameter estimates are used to calculate income and price elasticities for a number of product categories at different points of the income distribution.

Suggested Citation

  • Rulof Burger & Wicus Coetzee & Friedrich Kreuser & Neil Rankin, 2015. "Income and price elasticities of demand in South Africa: An application of the linear expenditure system," WIDER Working Paper Series wp-2015-100, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2015-100
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    2. Bercholz, Maxime & Ng, Shu Wen & Stacey, Nicholas & Swart, Elizabeth C., 2022. "Decomposing consumer and producer effects on sugar from beverage purchases after a sugar-based tax on beverages in South Africa," Economics & Human Biology, Elsevier, vol. 46(C).
    3. Margaret Chitiga & Martin Henseler & Ramos Emmanuel Mabugu & Hélène Maisonnave, 2022. "How COVID-19 Pandemic Worsens the Economic Situation of Women in South Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(3), pages 1627-1644, June.
    4. Merven, Bruno & Hartley, Faaiqa & Arndt, Channing, 2019. "Quantifying the Macro- and Socio-Economic Benefits of a Transition to Renewable Energy in South Africa," Conference papers 333091, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
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    6. Kabeya Clement Mulamba, 2022. "Relationship between households’ share of food expenditure and income across South African districts: a multilevel regression analysis," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-11, December.
    7. Bayu Kharisma & Armida S. Alisjahbana & Sutyastie Soemitro Remi & Putri Praditya, 2020. "Application of the Quadratic Almost Ideal Demand System (QUAIDS) Model in the Demand of the Household Animal Sourced Food in West Java," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 12(1), March.
    8. Chloe Allison & Neryvia Pillay, 2024. "Cash transfers and prices what is the impact of social welfare on prices," Working Papers 11057, South African Reserve Bank.
    9. Kharisma, Bayu & Hasanah, Alfiah & Remi, Sutyastie Soemitro & Zakia, In in Indah, 2021. "The pattern of poor household food consumption: The case of West Java Province," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 21(02), December.

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