Discussion Papers no. 202

Estimation of price elasticities from Norwegian household survey data

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.

Om publikasjonen

Tittel

Estimation of price elasticities from Norwegian household survey data

Ansvarlig

Leif Brubakk

Serie og -nummer

Discussion Papers no. 202

Utgiver

Statistics Norway, Research Department

Emne

Discussion Papers

Antall sider

34

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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