Home About us Contact
|
Home About us Contact | ||
|
|
||
Expenditure Elasticities (expenditure + elasticity)
Selected AbstractsEstimating the price elasticity of expenditure for prescription drugs in the presence of non-linear price schedules: an illustration from Quebec, CanadaHEALTH ECONOMICS, Issue 9 2005Paul Contoyannis Abstract The price elasticity of demand for prescription drugs is a crucial parameter of interest in designing pharmaceutical benefit plans. Estimating the elasticity using micro-data, however, is challenging because insurance coverage that includes deductibles, co-insurance provisions and maximum expenditure limits create a non-linear price schedule, making price endogenous (a function of drug consumption). In this paper we exploit an exogenous change in cost-sharing within the Quebec (Canada) public Pharmacare program to estimate the price elasticity of expenditure for drugs using IV methods. This approach corrects for the endogeneity of price and incorporates the concept of a ,rational' consumer who factors into consumption decisions the price they expect to face at the margin given their expected needs. The IV method is adapted from an approach developed in the public finance literature used to estimate income responses to changes in tax schedules. The instrument is based on the price an individual would face under the new cost-sharing policy if their consumption remained at the pre-policy level. Our preferred specification leads to expenditure elasticities that are in the low range of previous estimates (between ,0.12 and ,0.16). Naïve OLS estimates are between 1 and 4 times these magnitudes. Copyright © 2005 John Wiley & Sons, Ltd. [source] Food Import Demand in the Czech RepublicJOURNAL OF AGRICULTURAL ECONOMICS, Issue 1 2000Karel Janda This paper provides an overview of Czech food import demand in the transition period of the 1990s. It provides econometric estimates of own- and cross-price elasticities as well as group expenditure elasticities of Czech import demand for sixteen lower level and four upper level food groups. Based on the Hausman test for endogeneity, which supported the hypothesis that Czech import prices were exogenously determined outside of the Czech economy, we estimated five demand models as direct-demand systems of the AIDS type. The econometric estimation of elasticities used bimonthly data from March 1993 to August 1997. [source] Changes in food consumption expenditure in MalaysiaAGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 1 2003Akira Ishida In rapidly developing Asian countries, food consumption has drastically expanded and diversified. Trends in Malaysian food consumption are typical of those of developing countries. The overriding objective of this article, therefore, was to explore the structural changes in food consumption expenditure in West Malaysia after the early 1970s when its food consumption diversified under rapid economic growth and urbanization. We have estimated Engel's expenditure elasticities for food items using aggregated cross-sectional data from the Household Expenditure Survey. Our estimated results clearly indicate that while the expenditure elasticities of away-from-home food, and the elasticities of at-home expenditures for meat, fruits and vegetables, milk and dairy products are relatively high, those of rice and sugar are low. This suggests that the food expenditure structure in West Malaysia has diversified, adding meat, fruits and vegetables, milk and dairy products to the most dominant food item, rice. Moreover, it is likely that the share of food away from home will increase with income enhancement and urbanization due mainly to economic growth. [EconLit citations: Q11 (Aggregate Demand and Supply)]. © 2003 Wiley Periodicals, Inc. Agribusiness 19: 61,76, 2003. [source] An error corrected almost ideal demand system for major cereals in KenyaAGRICULTURAL ECONOMICS, Issue 1 2010Jonathan M. Nzuma Error correction model; AIDS; Cereal consumption; Kenya Abstract Despite significant progress in theory and empirical methods, the analysis of food consumption patterns in developing countries, particularly those in Sub-Saharan Africa (SSA), has received very limited attention. An attempt is made in this article to estimate an Error Corrected Almost Ideal Demand System for four major cereals consumed in Kenya employing annual data from 1963 to 2005. This demand system performs well on both theoretical and empirical grounds. The symmetry and homogeneity conditions are supported by the data and the,Le Chatelier,principle holds. Empirically, all own-price elasticities are negative and significant at 5% level and irrespective of the time horizon, maize, wheat, rice, and sorghum may be considered as necessities in Kenya. While the expenditure elasticities of all four cereals are positive, they are inelastic both in the short run and in the long run. Finally, wheat and rice complement maize consumption in Kenya while sorghum acts as a substitute. Since cereal consumers have price and income inelastic responses, a combination of income and price-oriented policies could improve cereal consumption in Kenya. [source] Lithuania's food demand during economic transitionAGRICULTURAL ECONOMICS, Issue 1 2000Ferdaus Hossain Abstract The linear approximate version of the almost ideal demand system (LA-AIDS) model is estimated using data from the Lithuanian household budget survey (HBS) covering the period from July 1992 to December 1994. Price and real expenditure elasticities for 12 food groups were estimated based on the estimated coefficients of the model. Very little or nothing is known about the demand parameters of Lithuania and other former socialist countries, so the results are of intrinsic interest. Estimated expenditure elasticities were positive and statistically significant for all food groups, while all own-price elasticities were negative and statistically significant, except for that of eggs which was insignificant. Results suggest that Lithuanian household consumption did respond to price and real income changes during their transition to a market-oriented economy. [source] Intra-Household Resource Allocation, Consumer Preferences and Commodity Tax Reforms: Australian EvidenceTHE ECONOMIC RECORD, Issue 247 2003Paul Blacklow Empirical analysis of household expenditure behaviour has traditionally ignored the issue of resource allocation between household members, assuming that they have identical or unitary preferences. This paper relaxes that assumption, develops a household sharing rule and proposes intra-household demand systems that are able to identify differences in the preferences of members from conventional data. The resulting price and expenditure elasticities are used to demonstrate that collective demand models suggest different directions for commodity tax reforms to those implied by the traditional unitary model. [source] Demand for Domestic and Imported Table Wine in British Columbia: A Source-differentiated Almost Ideal Demand System ApproachCANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 2 2004R. Carew The premium quality wine market in British Columbia has grown substantively over the past decade. However, few empirical studies exist to quantify how consumers have responded to these wines. This paper employs a source-differentiated almost ideal demand system (AIDS) model with time-varying parameters to estimate the demand for premium quality wines using scanner sales data from the British Columbia wine market. The empirical findings reveal that consumers' response to foreign-produced wines differs from that for wine produced locally. It is evident that the expenditure elasticities for British Columbia, European and Rest-of-the-World white wines are larger than those for red wines. The high expenditure elasticities associated with British Columbia white wines may suggest that these wines are associated with higher quality. We reject the hypotheses of block separability and product aggregation. There is no evidence of structural change from the tests employed in this paper. Le marché du vin de qualité supérieure a considérablement pris de l'expansion en Colombie-Britannique ces dix dernières années. Les auteurs utilisent un modèle à demande quasi idéale avec différenciation de la source et paramètres variant dans le temps pour estimer la demande de vin de qualité supérieure à partir des chiffres de vente sur le marché provincial. Les résultats empiriques indiquent que les consommateurs ne réagissent pas aux vins étrangers de la même façon qu'aux vins du cru. Les élasticités des dépenses sont manifestement plus nombreuses pour les vins blancs de la Colombie-Britannique, d'Europe et d'autres régions que pour les vins rouges. Les fortes élasticités liées aux vins blancs du cru laissent croire que ces derniers sont d'une grande qualité. Les auteurs rejettent l'hypothèse d'une séparabilité par bloc et de l'agrégation des produits. Les tests employés dans le cadre de cette recherche ne révèlent aucun changement structural. [source] Household vegetable demand in the Philippines: Is there an urban-rural divide?AGRIBUSINESS : AN INTERNATIONAL JOURNAL, Issue 4 2007Maria Erlinda M. Mutuc A Nonlinear Quadratic Almost Ideal Demand System (NQAIDS) that accounts for censoring and endogeneity problems is used to assess the vegetable demand behavior of rural and urban households in the Philippines. Detailed household consumption data for a number of vegetable commodities are utilized in the analysis. The results show that most of the expenditure and own-price elasticities of the vegetables analyzed are near or larger than unitary in both rural and urban areas. For majority of the vegetable commodities examined, only the expenditure elasticity is significantly different between rural and urban households. On the other hand, own-price and cross-price elasticities of most vegetables do not significantly differ between rural and urban households. The disaggregate vegetable demand elasticities in this study, as well as the insights from the rural/urban comparisons, provide valuable information that can be utilized for the analysis and design of various food-related policies in the Philippines. [JEL Classification: R21; Q11] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 511,527, 2007. [source] | ||||||||||||||||||||||