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Estimation of demand responses to a price change under the paucity of the data

Citation

Skovoroda, Rodion A. (1999). Estimation of demand responses to a price change under the paucity of the data. NES Working paper # BSP/99/027.

Abstract

The paper provides the analysis of indirect tax system and results of possible reforms under the paucity of adequate Panel Data. Demand responses to a price change are the main subject of consideration in the paper. The paper presents the generalization of standard Engel curve relationship. There was developed the specification of Engel curve which is non-linear in log of income. Specified Engel curves were estimated for the complete system of five commodity groups for eight regions of Russian Federation. Facing the absence of historical records, regularity conditions for utility maximization, such as Slutsky symmetry and Euler equation were used to obtain theoretically based system of demand elasticity’s.

URL

http://www.nes.ru/dataupload/files/programs/econ/preprints/1999/Skovoroda.pdf

Reference Type

Journal Article

Year Published

1999

Journal Title

NES Working paper # BSP/99/027

Author(s)

Skovoroda, Rodion A.