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Measuring Nash Equilibrium Consumption Externalities

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Author Info
Emanuela Randon

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Abstract

We estimate Nash equilibrium consumption externalities in household petrol budget shares. The reaction curves are obtained from an AIDS with petrol consumption externality. Using a continuous set of ten year cross sections from FES (1991-2000), we analyse the externality generated by households living in Newcastle area (UK). In each year, income decile cohorts are created. Panel techniques are used after pooling cross section estimates have been discussed. Using non nested procedures, two restricted models are compared: the cohort specific externality effect and the single popular case. The single popular is the model accepted by the data.

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Paper provided by Department of Economics, University of York in its series Discussion Papers with number 04/08.

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Handle: RePEc:yor:yorken:04/08

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Related research
Keywords: Household Economics; Nath Equilibirum; Externalities; Cross-Sectional Models; Models with Panel Data hazard; non-responsiveness; resource allocation;

Find related papers by JEL classification:
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
D62 - Microeconomics - - Welfare Economics - - - Externalities

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This page was last updated on 2009-11-25.


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