estimation of own and crossprice elasticities from househodsurvey data 重要文献.pdf

Journal of Econometrics 36 (1987) 7-30. North-Holland ESTIMATION OF OWN- AND CROSS-PRICE ELASTICITIES FROM HOUSEHOLD SURVEY DATA* Angus DEATON Woodrow Wilson School, Pmceton Uniuersi[v, Princelon, NJ 08544, USA Living Standards Unrt, The World Bunk, Wushu@m, DC 20433, USA A methodology is proposed that allows the use of expenditure and quantity data from household surveys to estimate a system of demand equations including freely estimated own- and cross-price elasticities. Unit values of purchases by individual households are used to indicate spatial variation in prices. and the fact that households in such surveys are geographically clustered is used to separate out the effects of measurement error from genuine price variation. The method also allows for variation in quality with household incomes and with prices. Results for a five good system for the Core d’Ivoire are presented and discussed. 1. Introduction The estimation of price elasticities of demand, especially cross-price elastici- ties, is an undertaking of great difficulty. Even in developed countries, where data, particularly time series data, are relatively plentiful, many decades of intellectual activity have not succeeded in estimating a set of parameters or elasticities that can be used with real confidence. In developing countries, time series data are a good deal less plent