The theory of factor demand has important implications for the study of the impact of immigration on wages. This paper derives the theoretical implications in the context of a general equilibrium model where the wage impact depends on the elasticity of product demand, the rate at which the consumer base expands as immigrants enter the receiving country, the elasticity of supply of capital, and ...

The relationship between income and willingness to pay for collectively provided publicrenvironmental goods is investigated. We show that while the income elasticity of willingness to pay and the ordinary income elasticity of demand are related, knowledge of one is insufficient to determine the magnitude or even the sign of the other. The income elasticity of willingness to pay is influenced by...

We estimate the price elasticity of water demand with household-level data, structurally modeling the piecewise-linear budget constraints imposed by increasing block pricing. We develop a mathematical expression for the unconditional price elasticity of demand under increasing block prices and compare conditional and unconditional elasticities analytically and empirically. We test the hypothesi...

A major drawback of constant elasticity supply and demand systems, which are widely used in simulation models for applied policy analysis, is that they can’t be restricted to globally comply with certain conditions implied by economic theory. This paper compares constant elasticity systems to supply and demand systems derived from second order flexible functional forms (FFFs). Furthermore, supp...

Evidence has shown that the provision of product information in electronic markets decreases the price elasticity of demand due to the ‘fit’ cost. This effect, however, could differ according to how consumers perceive the value of the product information to their quality evaluation procedures. If the information has very limited value, then they may not rely on it; thus, the demand elasticity m...

Price promotions are used extensively in marketing for one simple reason—consumers respond. The sales increase for a brand on promotion could be due to consumers accelerating their purchases (i.e., buying earlier than usual and/or buying more than usual) and/or consumers switching their choice from other brands. Purchase acceleration and brand switching relate to the primary demand and secondar...

Abstract—The demand for Urban transportation is characterised by a large scale temporal and spatial variations which causes heavy congestion inside metro trains in peak hours near Centre Business District (CBD) of the city. The conventional approach to address peak hour congestion, metro trains has been to increase the supply by way of introduction of more trains, increasing the length of the t...

Objective Estimate price elasticity of demand for cigarettes and alcohol in Ecuador using cross-sectional data from the National Survey of Urban and Rural Household Income and Expenditures (ENIGHUR is the acronym in Spanish) 2011-2012. Methods ENIGHUR 2011-2012 data were used with Deaton's (1, 2) methodology to estimate price elasticity of demand for cigarettes and alcohol with expenditure an...