According to the standard analysis of commodity prices, stockpiling is a necessary signature of speculation. This paper develops an approach suggesting that speculation may temporarily push crude oil prices above the level justified by physical-market fundamentals, without necessarily resulting in a significant increase in oil inventories. Looking beyond debate on the value of oil-demand price-...

We introduce a measure of elasticity of stochastic demand, called the elasticity of the lost-sales rate, which offers a unifying perspective on the well-known newsvendor with pricing problem. This new concept provides a framework to characterize structural results for coordinated and uncoordinated pricing and inventory strategies. Concavity and submodularity of the profit function, as well as s...

The evaluation of the impact of an increase in gasoline tax on demand relies crucially on the estimate of the price elasticity. This paper presents an extended application of the Partially Linear Additive Model (PLAM) to the analysis of gasoline demand using a panel of US households, focusing mainly on the estimation of the price elasticity. Methodologically, we propose a root-n consistent esti...

in this study, first we evaluate the total amount of support for domestic cotton (ams) for the years 1988 to 1999. then, using time series data for the study years, translog cost function was constrained. having calculated the price elasticity of demand for farm inputs, farmers’ reactions to price changes due to the price liberalization were identified. the results of study showed that in the w...

in this paper, productivity of and demand for water throughout eqlid’s sugar beet growers in 1385 were investigated. to address the objective 100 growers were selected using two-stage cluster sampling, then required dataset was obtained by interviewing and completing questionnaire. in order to study factors affecting sugar beet production, cobb-douglas production function was applied. based on ...

This paper takes a different approach to estimating demand for medical care that uses the negotiated prices between insurers and providers as an instrument. The instrument is viewed as a textbook "cost shifting" instrument that impacts plan offerings, but is unobserved by consumers. The paper finds a price elasticity of demand of around -0.20, matching the elasticity found in the RAND Health In...

This paper uses a general method of moment regression technique to estimate an energy demand function with a dataset covering 71 countries between 1965 and 2010. The estimated results show that countries undergoing rapid economic growth may show relatively higher income and price elasticities in the long run. The higher income elasticities and lower price elasticity in the short run of rapid gr...