AGGREGATION EFFECTS ON PRICE AND EXPENDITURE ELASTICITIES IN A QUADRATIC ALMOST IDEAL DEMAND SYSTEM Frank T. Denton and Dean C. Mountain

The views expressed in this paper are those of the author alone and do not necessarily reflect the views of the Federal Communications Commission, any Commissioners, or other staff. A current policy issue is whether there is a single local media market or several distinct local markets for newspaper, radio, and television advertising. An important step in defining a market is the estimation of ...

while ignoring income distribution and estimating aggregate demand generally leads to aggregation bias and thus, does not reflect households’ demand properly, yet aggregation bias is rarely considered in empirical demand studies and simply is ignored in most cases. the objective of the present study is to estimate aggregation bias in households’ demand for various types of meats and to evaluate...

This paper compares technologies across space and time on the basis of factual and counterfactual substitution elasticities and argues that differences in estimated substitution elasticities should be decomposed into two counterfactual components. While the first component is designed to indicate how the ease of substitution is altered by varied economic circumstances, the second addresses the ...

This paper examines the relationship between the cost of child care and the employment behavior of married and single mothers. The data used in this paper are from the 1987 SIPP, the first SIPP panel to utilize an improved probing of child care usage and expenditures. A primary contribution of this paper stems from the use of these improved child care data. A second contribution is to provide a...

This study estimates the demand for meat in Indonesian urban households encompassing beef, goat, broiler chicken, and native chicken. We estimate using cross-sectional data from 2013 Socio-Economic Household Survey data, which records food expenditure a week before survey. Because of some zero expenditure, Censored Almost Ideal Demand System (AIDS) consistent two-step estimation is applied. The...

abstract in agriculture, there is a lag between planting decision and supplying the produced commodity to the market. this makes the marketed commodities as predetermined variables and prices as market clearing factor. under such a condition, the inverse demand function in which price is a function of quantity is an appropriate tool for forecasting price responses to the injected quantities to ...

this paper presents an oil price cartel model. the aggregate reaction functions for non-cartel producers and for substitute suppliers are included. the former group acts as a price-taker, while the latter expects oil prices in production of its non-oil energy resources. this expectation about prices affects a cartel’s oil demand and, thus, gives intertemporal price elasticities it turns out tha...

We determine market segments by clustering households on the basis of their average choice elasticities across purchases and brands w.r.t. price, sales promotion and brand loyalty. The cluster analysis technique used is a maximum likelihood method which allows varying size and orientation and assumes constant volume. Elasticities originate from choice models with alternatively linear and nonlin...