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

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  • Ian Crawford

    ()
    (Institute for Fiscal Studies and University of Oxford)

  • François Laisney

    (Institute for Fiscal Studies and ZEW, Mannheim)

  • Ian Preston

    ()
    (Institute for Fiscal Studies and University College London)

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

Paper provided by Institute for Fiscal Studies in its series IFS Working Papers with number W02/17.

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Length: 35 pp
Date of creation: Oct 2002
Date of revision:
Handle: RePEc:ifs:ifsewp:02/17

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Keywords: Consumer demand; unit values;

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References

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  1. Lahatte, Agénor & Miquel, Ruth & Laisney, François & Preston, Ian, 1997. "Demand Systems with Unit Values: A Comparsion of Two Specifications," ZEW Discussion Papers 97-24, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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Cited by:
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. Dimova, Ralitza & Gang, Ira N. & Gbakou, Monnet Benoit Patrick & Hoffman, Daniel, 2011. "Can Economic Crises Be Good for Your Diet?," IZA Discussion Papers 5610, Institute for the Study of Labor (IZA).
  7. 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.
  8. 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.
  9. 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.
  10. Mussa, Richard, 2014. "Do the Poor Pay More for Maize in Malawi?," MPRA Paper 54623, University Library of Munich, Germany.
  11. 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.
  12. Timothy K. M. Beatty, 2008. "Expenditure dispersion and dietary quality: evidence from Canada," Health Economics, John Wiley & Sons, Ltd., vol. 17(9), pages 1001-1014.
  13. 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.
  14. 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.
  15. 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).
  16. 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).
  17. Castañon-Herrera, Alberto & Urzúa, Carlos M., 2012. "The non-optimality of the Mexican indirect tax system," EGAP Chapters, in: Fiscal Inclusive Development: Microsimulation Models for Latin America Tecnológico de Monterrey, Campus Ciudad de México.
  18. 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.
  19. 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).

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