Engel Curves for 29 Categories of CES Expenditure

  • Lester D. Taylor


In the chapters to this point, price information collected in quarterly surveys by the American Chambers of Commerce Research Association has been combined with the CES quarterly surveys to create data sets from which price as well as total-expenditure elasticities have been estimated. However, because of the limited coverage of the ACCRA data, estimation has been restricted to a fairly high level of aggregation. While the price and total-expenditure elasticities obtained at this level are obviously of interest in their own right, one of the main findings with the CES data is that the presence or absence of prices in demand functions makes little difference to the estimates of total-expenditure elasticities. This apparent absence of an omitted-variables bias is an important result, for it suggests that estimates of total-expenditure elasticities at lower levels of aggregation, for which expenditure data are available but price information is not, can reasonably be assumed to be free of bias as well.


Quantile Regression Income Elasticity Telephone Service Expenditure Category Engel Curve 
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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.Department of EconomicsUniversity of ArizonaTucsonUSA

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