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Cross-section data, disequilibrium situations and estimated coefficients: evidence from car ownership demand

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Author Info

  • Anna Matas

    ()
    (Grup d'Anàlisi Econòmica Aplicada (GEAP), Departament d'Economia Aplicada, Universitat Autònoma de Barcelona)

  • Josep-Lluis Raymond

    ()
    (Grup d'Anàlisi Econòmica Aplicada (GEAP), Departament d'Economia i Història Econòmica, Universitat Autònoma de Barcelona)

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    Abstract

    The objective of this paper is to analyse to what extent the use of cross-section data will distort the estimated elasticities for car ownership demand when the observed variables do not correspond to a state equilibrium for some individuals in the sample. Our proposal consists of approximating the equilibrium values of the observed variables by constructing a pseudo-panel data set which entails averaging individuals observed at different points of time into cohorts. The results show that individual and aggregate data lead to almost the same value for income elasticity, whereas with respect to working adult elasticity the similarity is less pronounced.

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    File URL: http://www.pcb.ub.es/xreap/aplicacio/fitxers/XREAP2007-04.pdf
    File Function: First version, 2007
    Download Restriction: no

    File URL: http://www.pcb.ub.es/xreap/aplicacio/fitxers/XREAP2007-04.pdf
    File Function: Revised version, 2007
    Download Restriction: no

    Bibliographic Info

    Paper provided by Xarxa de Referència en Economia Aplicada (XREAP) in its series Working Papers with number XREAP2007-04.

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    Length: 18 pages
    Date of creation: Jun 2007
    Date of revision: Jun 2007
    Handle: RePEc:xrp:wpaper:xreap2007-04

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    Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques i Empresarials, Universitat de Barcelona, c/ Tinent Coronel Valenzuela, 1-11, 08034 Barcelona
    Phone: +34+934039653
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    Web page: http://www.pcb.ub.edu/xreap
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    Related research

    Keywords: Cross-section; Pseudo panel; Disequilibrium.;

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