Price elasticities for disaggregated expenditures

François Gardes ()
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François Gardes: Centre d'Economie de la Sorbonne - Paris School of Economics, https://centredeconomiesorbonne.univ-paris1.fr

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

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

Keywords: domestic production; full price elasticity; Pigou law (search for similar items in EconPapers)
JEL-codes: C33 D1 D13 J22 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2017-05
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:17026

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