Demand System Estimation in the Absence of Price Data: an Application of Stone-Lewbel Price Indices
AbstractLewbel (1989) developed an approach for the construction of household level commodity price indices (Stone-Lewbel prices) using only budget shares and CPIs of the goods comprising the commodity groups. In this study, we consider three alternative CPIs for the construction of SL prices and the estimation of a demand system. The three CPIs consider are: monthly, quarterly and unity. Where the unity CPI is used to simulate a scenario where no price index information is available. Elasticities and marginal effect estimates from the demand models proved to be robust to the alternative CPIs considered in this study (even to the absence of one).
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington with number 124819.
Date of creation: 2012
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Stone-Lewbel price index; censored demand models; EASI demand model; Demand and Price Analysis;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-25 (All new papers)
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