Estimation of price elasticities from Norwegian householdsurvey data
Working paper
Åpne
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http://hdl.handle.net/11250/180797Utgivelsesdato
1997Metadata
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- Discussion Papers [1003]
Sammendrag
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.
Keywords: Consumer demand, price elasticities, unit values, quality