Establishing a robust causal relationship between trade and income has been difficult. Frankel and Romer (1999) use geographic instruments to identify a positive effect of trade on income. Rodriguez and Rodrik (2000) show that these results are not robust to controlling for missing variables such as distance to the equator or institutions. This paper solves the missing variable problem by gener...

This study evaluates the household food demand patterns among different income sorts in urban and rural areas of Pakistan and estimation of food expenditure and household size elasticities. The different income sorts are the Lower Income Group(≤ 8000), Lower-middle Income Group(800112000), Middle Income Group(12001-18000),Upper-middle Income Group (18001-35000) and Upper Income Group (35000+) P...

This article uses recently published time series data for the Organization for Economic Cooperation and Development countries to estimate income elasticities for health care expenditures. Several different models and alternative specifications are examined to determine the sensitivity and robustness of the estimated relationships. Income is the dominant-determinant of health care spending and l...

I identify assumptions under which policies that maximize expected surplus are Pareto Optimal–even when expected consumer surplus does not even locally represent preferences over price-income lotteries. Besides the oft-made partial equilibrium assumptions that only one price varies, and that income changes do not affect demand, the two other assumptions are that every consumer’s indirect utilit...

This paper studies the cross-base tax elasticity of capital gains realizations to labor income taxes when capital gains are taxed at a separate proportional tax rate. Using a longitudinal panel of over 265,000 individuals in Sweden, this paper shows in a regression kink design that labor income taxes affect capital gains at the extensive and intensive margins. An increase in the marginal labor ...

This article reports on a simulation and scenario analysis of Chinese passenger vehicle growth and resulting energy demand and CO2 emissions. The model includes provincial level logistic growth functions with saturation levels representative of neighboring Asian economies, income growth measured in international dollars, and both estimated and literature-based income elasticities. Scenarios exp...

This paper estimates the impact of income on the body weight and clinical weight classification of elderly Americans using a natural experiment that led otherwise identical retirees to receive significantly different Social Security payments based on their year of birth. We estimate models of instrumental variables using data from the National Health Interview Surveys and find no significant ef...

The aim of the paper is to study the relationship of individuals’ sport goods consumption to personal income and relative sport price in Hungary in the period 1992-2006. It is shown, that the trend of the real sport goods consumption in conjunction with real income decreased till 2000 and it has been increasing since then. Income and price elasticity figures for both periods show, that sport go...

In this paper, we use data from the US census to document the history of the relationship between fertility choice and key economic indicators at the individual level for women born between 1826 and 1960. We find that this data suggests several new facts that should be useful for researchers trying to model fertility. (1) The reduction in fertility known as the Demographic Transition (or the Fe...

How wages and non labor income affect the decisions to work and hours of work are critical for understanding the work disincentive effects of taxes and transfers, and the attendant design of optimal income tax and transfer schemes. I use data from the Current Population Survey and variation induced by fundamental reforms to the U.S. tax and welfare systems in recent decades to estimate the labo...