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Estimation of Price Elasticities from Norwegian Household Survey Data

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Author Info
Leif Brubakk (Statistics Norway)

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Abstract

In this paper, a subsystem of demand equations is estimated using data from the Norwegian survey of household expenditures 1989-1991. One objective has been to obtain substantial knowledge of Norwegian household demand for a set of food groups, with emphasis on price responses, using two different approaches, namely, the method proposed in Deaton (1990), which utilises unit values instead of market prices, and an alternative approach, which relies on market prices. Comparing the two approaches, we conclude that they produce significantly different results. Possible explanations of this finding and implications for further research are discussed.

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Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number 202.

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Date of creation: Sep 1997
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Handle: RePEc:ssb:dispap:202

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Related research
Keywords: Consumer demand price elasticities unit values quality.

Find related papers by JEL classification:
C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
C5 - Mathematical and Quantitative Methods - - Econometric Modeling
D1 - Microeconomics - - Household Behavior

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  1. Deaton, Angus, 1990. "Price elasticities from survey data : Extensions and Indonesian results," Journal of Econometrics, Elsevier, vol. 44(3), pages 281-309, June. [Downloadable!] (restricted)
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  2. 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. [Downloadable!] (restricted)
  3. Deaton, A., 1988. "Quality, Quantity, And Spatial Variation Of Price," Papers 30, World Bank - Living Standards Measurement.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Risto Sullström & Adriaan Perrels, 2004. "Finnish Household Consumption in Monetary and Physical Terms - Trends and Clarifications," VATT Discussion Papers 351, Government Institute for Economic Research (VATT). [Downloadable!]
  2. Yoko Niimi, 2005. "An Analysis of Household Responses to Price Shocks in Vietnam: Can Unit Values Substitute for Market Prices?," PRUS Working Papers 30, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
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