T paper examines demand elasticities using an integrated framework proposed by Hanemann [Hanemann, M. W. 1984. Discrete/continuous models of consumer demand. Econometrica 52(3) 541–561], which models the incidence, brand choice, and quantity decisions of a consumer as an outcome of her utility maximization subject to budget constraints. Although the Hanemann framework has been the mainstay of e...

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 ...

Schoefer, Benjamin—Regulation and taxation: A complementarity I show how quantity regulation can lower elasticities and thereby increase optimal tax rates. Such regulation imposes regulatory incentives for particular choice quantities. Their strength varies between zero (laissez faire) and infinite (command economy). In the latter case, regulation effectively eliminates any intensive behavioral...

Unit values, calculated as the ratio of household expenditure on a particular food to the quantity consumed, are often used as proxies for market prices in demand studies based on cross-sectional survey data. Because unit values are likely to give biased estimates of price elasticities, Deaton (1987, 1990) developed procedures for correcting these biases. However, empirical evidence on the bias...

In recent years, manufacturers have become increasingly disposed toward the use of sales promotions, often at the cost of advertising. Yet the long-term implications of these changes for brand profitability remain unclear. In this paper, we seek to offer insights into this important issue. We consider the questions of i) whether it is more desirable to advertise or promote, ii) whether it is be...

Perfect competition or Bertrand competition cause price to equal marginal cost, so that excise tax incidence can be illustrated with the most basic supply-demand diagram. Some results are: • excise taxes are shared by suppliers and demanders according to their relative price elasticities • holding revenue fixed, it doesn’t matter (for supply price, demand price, and quantity traded) whether the...

The generation time is commonly defined as the mean age of mothers at birth. In matrix population models, a general formula is available to compute this quantity. However, it is complex and hard to interpret. Here, we present a new approach where the generation time is envisioned as a return time in an appropriate Markov chain. This yields surprisingly simple results, such as the fact that the ...

A wave matrix is presented consisting of price and quantity elasticities. Its eigenvalues determine the feasible cycles of a dynamic Leontief system. A numerical illustration and a 20-year trajectory are computed with the aid of a seven sector USA matrix for the year 1958. A short discussion of further work required closes the paper. © 2000 Elsevier Science B.V. All rights reserved. JEL classif...

Preliminary; not for quotation. NBER working papers are distributed informally and in limited number for conuDents only. This report has not undergone the review accorded official NBERpublications; in particular, it has not yet been submitted for approval by the Board of Directors. Introduction rn an earl ie.r paper, Becker and Lewis explained why the quantity and quality of children (and, by e...