Overall Assessment of CES and PCE Elasticities
As has been noted at several points, the primary purpose of this exercise has been to estimate price and total-expenditure elasticities for as broad an array of consumption categories as possible from cross-sectional data from the BLS quarterly surveys of consumer expenditures and time-series data from the personal consumption expenditure tables of the National Income and Product Accounts. A substantial number of elasticities have been estimated, and at this point readers are probably weary of the prospect of seeing more. Accordingly, this chapter will bring this part of the study to a close by summarizing the results that have been obtained to this point and assessing their significance for future U.S. consumption behavior. However, to begin with, it will be useful to remind ourselves of the important differences between the present effort and the earlier editions of CDUS.