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Estimation of household demand systems with theoretically compatible Engel curves and unit value specifications

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  • Crawford, Ian
  • Laisney, Francois
  • Preston, Ian

Abstract

We develop a method for estimation of price reactions using unit value data which exploits the implicit links between quantity and unit value choices. This allows us to combine appealing Engel curve specifications with a model of unit value determination in a way which is consistent with demand theory, unlike methods hitherto prominent in the literature. The method is applied to Czech data. --

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Econometrics.

Volume (Year): 114 (2003)
Issue (Month): 2 (June)
Pages: 221-241

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Handle: RePEc:eee:econom:v:114:y:2003:i:2:p:221-241

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Web page: http://www.elsevier.com/locate/jeconom

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  2. Browning, Martin & Meghir, Costas, 1991. "The Effects of Male and Female Labor Supply on Commodity Demands," Econometrica, Econometric Society, vol. 59(4), pages 925-51, July.
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  5. Lahatte, Agenor & Miquel, Ruth & Laisney, Francois & Preston, Ian, 1998. "Demand systems with unit values:: A comparison of two specifications," Economics Letters, Elsevier, vol. 58(3), pages 281-290, March.
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  10. Deaton, Angus, 1987. "Estimation of own- and cross-price elasticities from household survey data," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 7-30.
  11. Banks, James & Blundell, Richard & Lewbel, Arthur, 1996. "Tax Reform and Welfare Measurement: Do We Need Demand System Estimation?," Economic Journal, Royal Economic Society, vol. 106(438), pages 1227-41, September.
  12. Pitt, Mark M, 1983. "Food Preferences and Nutrition in Rural Bangladesh," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 105-14, February.
  13. Case, Anne C, 1991. "Spatial Patterns in Household Demand," Econometrica, Econometric Society, vol. 59(4), pages 953-65, July.
  14. Kodde, D A & Palm, Franz C & Pfann, G A, 1990. "Asymptotic Least-Squares Estimation Efficiency Considerations and Applications," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 5(3), pages 229-43, July-Sept.
  15. Newey, Whitney K., 1984. "A method of moments interpretation of sequential estimators," Economics Letters, Elsevier, vol. 14(2-3), pages 201-206.
  16. Nichele, Veronique & Robin, Jean-Marc, 1995. "Simulation of indirect tax reforms using pooled micro and macro French data," Journal of Public Economics, Elsevier, vol. 56(2), pages 225-244, February.
  17. Pashardes, Panos, 1993. "Bias in Estimating the Almost Ideal Demand System with the Stone Index Approximation," Economic Journal, Royal Economic Society, vol. 103(419), pages 908-15, July.
  18. Lewbel, Arthur, 1989. "Identification and Estimation of Equivalence Scales under Weak Separability," Review of Economic Studies, Wiley Blackwell, vol. 56(2), pages 311-16, April.
  19. Mohamed Ayadi & Jaya Krishnakumar & Mohamed Salah Matoussi, 2003. "Pooling surveys in the estimation of income and price elasticities: An application to Tunisian households," Empirical Economics, Springer, vol. 28(1), pages 181-201, January.
  20. Strauss, John, 1982. "Determinants of food consumption in rural Sierra Leone : Application of the quadratic expenditure system to the consumption-leisure component of a household-firm model," Journal of Development Economics, Elsevier, vol. 11(3), pages 327-353, December.
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Citations

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Cited by:
  1. Meyerhoefer, Chad D. & Ranney, Christine K. & Sahn, David E., 2004. "Consistent Estimation Of Longitudinal Censored Demand Systems," 2004 Annual meeting, August 1-4, Denver, CO 19992, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. Silva, Andres & Etilé, Fabrice & Jamet, Gaelle, 2013. "Consequences of the Five-a-Day Campaign: Evidence from French Panel Data," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150426, Agricultural and Applied Economics Association.
  3. Capacci, Sara & Mazzocchi, Mario & Shankar, Bhavani, 2012. "The regional price of junk foods relative to healthy foods in the UK: indirect estimation of a time series, 1997-2009," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 134720, Agricultural Economics Society.
  4. Xavier Irz, 2010. "Modeling physical quantities of food and nutrients consumed from aggregate data-with an application to Finland," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3-4), pages 293-304, 05.
  5. Ralitza Dimova & Ira N. Gang & Monnet B. P. Gbakou & Daniel Hoffman, 2012. "The impact of food and economic crises on diet and nutrition," Brooks World Poverty Institute Working Paper Series 17512, BWPI, The University of Manchester.
  6. Timothy K.M. Beatty, 2007. "Expenditure Dispersion and Dietary Quality: Evidence from Canada," Health, Econometrics and Data Group (HEDG) Working Papers 07/13, HEDG, c/o Department of Economics, University of York.
  7. Stewart, Hayden & Blisard, Noel, 2006. "Household versus Community Effects: Who Really Pays More for Food?," 2006 Annual meeting, July 23-26, Long Beach, CA 21053, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  8. Capacci, Sara & Mazzocchi, Mario, 2011. "Five-a-day, a price to pay: An evaluation of the UK program impact accounting for market forces," Journal of Health Economics, Elsevier, vol. 30(1), pages 87-98, January.
  9. Mussa, Richard, 2014. "Do the Poor Pay More for Maize in Malawi?," MPRA Paper 54623, University Library of Munich, Germany.
  10. Shiyuan Chen & Sally Wallace, 2009. "Food Consumption in Jamaica: A Household and Social Behavior," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0901, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  11. Boizot-Szantai, Christine & Etile, Fabrice, 2005. "The Food Prices / Body Mass Index Relationship: Theory and Evidence from a Sample of French Adults," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24734, European Association of Agricultural Economists.
  12. Ralitza Dimova & Ira N. Gang & Monnet Gbakou & Daniel Hoffman, 2011. "Can economic crises be good for your diet?," Working Papers 299, Institut für Ost- und Südosteuropaforschung (Institute for East and South-East European Studies).
  13. Rémy Lambert & Bruno Larue & Clément Yélou & George Criner, 2006. "Fish and meat demand in Canada: Regional differences and weak separability," Agribusiness, John Wiley & Sons, Ltd., vol. 22(2), pages 175-199.
  14. Castañón-Herrera, Alberto & Urzúa, Carlos M., 2011. "The non-optimality of the Mexican indirect tax system," EGAP Working Papers 2011-02, Tecnológico de Monterrey, Campus Ciudad de México.
  15. Tefera, Nigussie, 2012. "Welfare Impacts of Rising Food Prices in Rural Ethiopia: a Quadratic Almost Ideal Demand System Approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126698, International Association of Agricultural Economists.
  16. Chen, Yuyu & Xing, Weibo, 2011. "Quantity, quality, and regional price variation of cigarettes: Demand analysis based on a household survey in China," China Economic Review, Elsevier, vol. 22(2), pages 221-232, June.
  17. Tafere, Kibrom & Taffesse, Alemayehu Seyoum & Tamru, Seneshaw & Tefera, Nigussie & Paulos, Zelekawork, 2011. "Food demand elasticities in Ethiopia: Estimates using household income consumption expenditure (HICE) survey data," ESSP working papers 11, International Food Policy Research Institute (IFPRI).
  18. Silva, Andres & Etilé, Fabrice & Boizot-Szantai, Christine & Dharmasena, Senarath, 2013. "The Impact of Beverage Taxes on Quantity and Quality of Consumption in France," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150428, Agricultural and Applied Economics Association.
  19. Dong, Diansheng & Kaiser, Harry M. & Myrland, Oystein, 2003. "Estimation Of Censored La/Aids Model With Endogenous Unit Values," Research Bulletins 122119, Cornell University, Department of Applied Economics and Management.

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