OBJECTIVES The objectives of this study are to: (1) examine the pattern of price elasticity of three major tobacco products (bidi, cigarette and leaf tobacco) by economic groups of population based on household monthly per capita consumption expenditure in India and (2) assess the effect of tax increases on tobacco consumption and revenue across expenditure groups. SETTING Data from the 2011-...

It is straightforward to evaluate how a perfectly-optimizing, perfectly-informed customer will respond to a non-linear price schedule, but such a customer is rare. In the common case of increasing-block pricing of water and electricity, consumers do not know what marginal price they face during a billing period, because they do not know what demand shocks will occur during the period. If consum...

the main objective of this study was to evaluate the response of consumers to changes in income and prices of chicken meat in the short run and long run. in order to achieve this goal, vector auto regression (var) and vector error correction model (vecm) have been applied to data since 1974 to 2007. impulse response function (irf) calculation indicated that past and present consumption of chick...

background and objectives: pharmaceutical expenditures are responsible for a major part of health systems’ cost. according to the who’s statistics, iran is the first among the 20 countries in the world in terms of drug consumption. the first step in controlling consumption of a particular good is to identify factor inducing the relevant demands. hence, this study aimed to identify the pattern a...

In Absolute or Relative Terms?How Framing Prices Affects the Consumer Price Sensitivity ofHealth Plan Choice This paper provides field evidence on (a) how price framing affects consumers’ decision toswitch health insurance plans and (b) how the price elasticity of demand for health insurancecan be influenced by policymakers through simple regulatory efforts. In 2009, in order to...

In sticky price models with endogenous investment, virtually all monetary policy rules that set a nominal interest rate in response solely to future inflation induce real indeterminacy of equilibrium. Applying the Samuelson-Farebrother conditions, we obtain a necessary and sufficient condition for local real determinacy, which reveals that increasing price stickiness or letting policy respond a...

Identifying the factors that influence electricity demand in the continental United States and mathematically characterizing them are important for developing electricity consumption projections. The price elasticity of demand is especially important, since the electricity price effects of policy implementation can be substantial and the demand response to policy-induced changes in prices can s...

Economic literature in developed countries suggests that demand for alcoholic beverages is sensitive to price, with an estimated price elasticity ranging from -0.38 for beer and -0.7 for liquor. However, few studies have been conducted in developing countries. We employ a large individual-level dataset in China to estimate the effects of price on alcohol demand. Using the data from China Health...