Confidence Intervals for Elasticities and Flexibilities from Linear Equations

Miller, Stephen E.; Capps, Oral; Wells, Gary J.

doi:10.2307/1240807

Cited by 30 publications

(10 citation statements)

References 3 publications

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“…This is done for two reasons. First, a number of researchers have warned against the use of asymptotic standard errors when evaluating the significance of estimated elasticities (Dorfman, Kling, & Sexton, 1990;Green, Hahn, & Rocke, 1987;Miller, Capps, & Wells, 1984). Krinsky and Robb (1991) show that the Monte Carlo approach works well.…”

Section: Competitive Behavior Of National Brandsmentioning

confidence: 99%

Competitive behavior of national brands: The case of orange juice

et al. 2001

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The purpose of this study is to examine orange juice demand, focusing on the main forms: frozen and chilled, and considering the role of brands, private label, and product variety. We have data for 54 regions in the U.S. for 1989 and 1990. This is advantageous. A December 1989 freeze resulted in major increases in prices of all forms of orange juice in 1990. Results suggest that the three national brands were using some pricing strategies, but we find no indication that it has been to the detriment of smaller competitors. Indeed, private label and regional brands improved their market positions during the period. [Econlit Classifications: D130, D400].

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Section: Competitive Behavior Of National Brandsmentioning

confidence: 99%

Competitive behavior of national brands: The case of orange juice

et al. 2001

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“…The Marshallian elasticities for labor consist of a ratio of stochastic variables, while those for output and wood comprise a product and a ratio. Thus, elasticity variances were calculated using the first order Taylor series approach described in Miller et al (1984). Since Table 3 presents point estimates, variances and covariances of price and quantity terms we computed from trend-adjusted series.…”

Section: Resultsmentioning

confidence: 99%

An econometric analysis of output supply and input demand in the Canadian softwood lumber industry

Latta¹,

Adams²

2000

Revue canadienne de recherche forestière

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Few studies have examined the own-price elasticity of Canadian softwood lumber supply or output-adjusted factor demand elasticities over the past two decades, despite the utility of these measures in understanding producer response to tariffs, to market shifts (such as the decline in U.S. public harvest), and to changes in domestic forest policies. The present analysis employs a normalized, restricted quadratic profit function approach to estimate lumber supply and Marshallian factor demand elasticities for three Canadian regions. Results indicate that the lumber supply elasticity in the British Columbia coast region may be twice as large as that in the interior or eastern regions. Comparison of Hicksian factor demand elasticities with earlier studies suggests that the own price elasticity of labor demand may be two or more times larger than that for wood. Results also indicate differential time trends in Marshallian lumber output and wood demand elasticities across regions, rising in the British Columbia coast and falling elsewhere over the past two decades. Morishima elasticities of substitution from the present and past studies indicate that the wood for labor factor intensity is more sensitive to changes in labor price than is the labor for wood intensity to changes in wood price.Résumé : Au cours des deux dernières décennies, peu d'études ont examiné l'élasticité-prix de l'offre de bois d'oeuvre résineux canadien ou les élasticités de la demande pour le facteur de production ajusté, malgré l'utilité de ces mesures afin de comprendre la réaction du producteur aux tarifs, aux changements du marché (tel que le déclin dans la récolte sur la forêt publique des États-Unis) et aux changements dans les politiques forestières domestiques. Cette étude utilise l'approche d'une fonction quadratique de profit, restreinte et normalisée, pour estimer l'offre de bois d'oeuvre et les élasticités marshalliennes de la demande pour le facteur de production, le tout portant sur trois régions canadiennes. Les résultats indiquent que l'élasticité de l'offre de bois d'oeuvre dans la région côtière de la Colombie-Britannique peut être deux fois plus élevée que celle de la zone intérieure ou des régions de l'Est. Une comparaison des élasticités hicksiennes de la demande du facteur avec des études antérieures, suggère que l'élasticité-prix de la demande de maind'oeuvre peut être deux fois plus élevée, et même davantage, que celle pour le bois. Les résultats indiquent aussi qu'au cours des deux dernières décennies, il y a eu différentes tendances temporelles marshalliennes dans la production de bois et dans les élasticités de la demande de bois entre les régions : une augmentation dans la région côtière de la Colombie-Britannique et une diminution ailleurs. Les élasticités de substitution de Morishima provenant de la présente étude et des études antérieures indiquent que l'intensité du facteur bois pour main-d'oeuvre est plus sensible aux changements de prix de la main-d'oeuvre que ne l'est l'intensité du facteur main-d'oeuvre pour boi...

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“…Fuller and Martin (1961) first propose the Fieller for the construction of intervals for the case of the dynamic elasticity and Fuller (1962) subsequently uses the Fieller to derive the confidence intervals of isoclines based on an estimated production function. Miller et al (1984) were the first to demonstrate how the Fieller could be widely employed for elasticities. This result was affirmed by Dorfman et al (1990) with the addition of resampling methods in the comparison of techniques although the applications they considered resulted in less dramatic differences which may be due to some factors we discuss in Sections 2.3 and 2.4.…”

Section: Elasticity Estimates and The Fieller Intervalmentioning

confidence: 99%