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Price Elasticities from Survey Data: Extensions and Indonesian Results

  • Angus Deaton
Part of the International Economic Association Series book series (IEA)

Abstract

For many questions of public policy, it is important to know how consumers change their expenditures on goods in response to changes in prices. For developing countries, there are typically rather few time series data from which price elasticities can be inferred. By contrast, cross-sectional household expenditure surveys are available for many LDCs. In Deaton (1986, 1987) I developed a methodology for using such household survey data to detect spatial variation in prices, and to estimate price elasticities by comparing spatial price variation to spatial demand patterns. In the first paper, I showed how to estimate the own-price elasticity for a single good by comparing its demand to its price. In the second paper, the methodology was extended to cover systems of demand functions, so that cross-price elasticities could be estimated, and substitution patterns studied.

Keywords

Price Elasticity Quality Effect Fresh Fish Budget Share Rice Price 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© International Economic Association 1991

Authors and Affiliations

  • Angus Deaton
    • 1
  1. 1.Princeton UniversityUSA

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