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Pooling surveys in the estimation of income and price elasticities: An application to Tunisian households

Author

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  • Mohamed Ayadi
  • Jaya Krishnakumar
  • Mohamed Salah Matoussi

Abstract

This paper presents a methodological extension of Deaton's (1990) model for estimating price elasticities, by pooling Tunisian data from several surveys to improve the inter-cluster variability of unit values which is one of the key elements used in the derivation of these elasticities. Since the surveys cover a relatively long period, possible structural changes in consumption behaviour occurring over time are accounted for by postulating that certain response coefficients of the basic model vary from one survey to the other. The own price and cross price elasticities calculated using appropriate estimates of the extended model are satisfactory both from the economic point of view of their sign and the statistical point of view of their significance and superior to those obtained using a single survey. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Mohamed Ayadi & Jaya Krishnakumar & Mohamed Salah Matoussi, 2003. "Pooling surveys in the estimation of income and price elasticities: An application to Tunisian households," Empirical Economics, Springer, vol. 28(1), pages 181-201, January.
  • Handle: RePEc:spr:empeco:v:28:y:2003:i:1:p:181-201
    DOI: 10.1007/s001810100126
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    Citations

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    Cited by:

    1. Crawford, Ian & Laisney, Francois & Preston, Ian, 2003. "Estimation of household demand systems with theoretically compatible Engel curves and unit value specifications," Journal of Econometrics, Elsevier, vol. 114(2), pages 221-241, June.
    2. Alessandro Nicita, 2008. "Price elasticities and tax reform in Mexico," Applied Economics, Taylor & Francis Journals, vol. 40(18), pages 2329-2335.
    3. Christophe Muller & Nouréini Sayouti, 2021. "How does information on minimum and maximum food prices affect measured monetary poverty? Evidence from Niger," Working Papers halshs-03097641, HAL.
    4. Hatem Jemmali, 2017. "What Drive Regional Economic Inequalities in Tunisia? Evidence From Unconditional Quantile Decomposition Analysis," Working Papers 1159, Economic Research Forum, revised 11 2017.
    5. Hatem Jemmali, 2016. "Inequality of Opportunities among Tunisian Children over Time and Space," Working Papers 1048, Economic Research Forum, revised 09 Jan 2016.
    6. Hatem Jemmali, 2019. "Inequality of Opportunities among Tunisian Children over Time and Space," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 12(1), pages 213-234, February.

    More about this item

    Keywords

    Key words: pooling cross-sections; consumer demand system; unit value; price elasticity.; JEL classification code: D12;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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