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Estimation of Price Elasticities from Norwegian Household Survey Data

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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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Bibliographic Info

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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Keywords: Consumer demand; price elasticities; unit values; quality.;

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  1. Deaton, A., 1990. "Price Elasticities From Surveys Data: Extensions And Indonesian Results," Papers 69, World Bank - Living Standards Measurement.
  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.
  3. L. Wade, 1988. "Review," Public Choice, Springer, vol. 58(1), pages 99-100, July.
  4. Deaton, Angus, 1988. "Quality, Quantity, and Spatial Variation of Price," American Economic Review, American Economic Association, vol. 78(3), pages 418-30, June.
  5. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, April.
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Cited by:
  1. Risto Sullström & Adriaan Perrels, 2004. "Finnish Household Consumption in Monetary and Physical Terms - Trends and Clarifications," Discussion Papers 351, Government Institute for Economic Research Finland (VATT).
  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.

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