IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v79y1997i1p62-79.html
   My bibliography  Save this article

Weak Separability and the Estimation of Elasticities in Multistage Demand Systems

Author

Listed:
  • David L. Edgerton

Abstract

The necessary conditions for multistage budgeting to be at least approximately justified are reviewed, and the plausibility of these assumptions (i.e., weak separability and low variability of price indices with utility level) are discussed. Using no further assumptions, simple relationships between expenditure and price elasticities in different budgeting levels are derived. These results are applied to a three-stage model for Swedish food consumption, and it is shown that the assumptions are not inappropriate. Restricting the analysis to the last stage of a multistage budgeting process is also shown to lead to considerable errors, which could well have policy consequences. Copyright 1997, Oxford University Press.

Suggested Citation

  • David L. Edgerton, 1997. "Weak Separability and the Estimation of Elasticities in Multistage Demand Systems," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 62-79.
  • Handle: RePEc:oup:ajagec:v:79:y:1997:i:1:p:62-79
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/1243943
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:ajagec:v:79:y:1997:i:1:p:62-79. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/aaeaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.