Units of Measurement and the Stone Index in Demand System Estimation

Moschini, GianCarlo

doi:10.2307/1243889

Cited by 296 publications

(148 citation statements)

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“…4 normalized to have homogenous units because the log-linear Laspeyres index is not invariant to changes in the measurement unit for p i,j (e.g. from index number to monetary measure, see Moschini, 1995). This yields ln(P * i ) = js j ln(p i,j /p j ).…”

Section: A Demand System Involving Leisurementioning

confidence: 99%

Estimating a Consumer Demand System of Energy, Mobility and Leisure: A Microdata Approach for Germany

Beznoska

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. 1 Abstract This paper investigates empirically the consumer demand of environmentally relevant goods for Germany, as well as their relationship to the demand for leisure. Higher prices for energy goods like gas, electricity or fuel oil due to higher indirect taxation amongst others may have serious welfare and distributional effects for households. Also, there is very little evidence of the labor market implications of environmental taxation, as there is e.g. no quantification of labor supply effects, respectively leisure demand effects for Germany. Using a demand system to estimate the price, cross-price and income effects of the goods mobility, electricity, heating and leisure from microdata, there will also be accounted for the extensive demand for leisure, which is the not negligible labor market participation. Additionally, the extensive and intensive leisure demand is combined to total leisure demand elasticities, which can then be used for welfare and behavior analyses. Terms of use: Documents in

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Section: A Demand System Involving Leisurementioning

confidence: 99%

Estimating a Consumer Demand System of Energy, Mobility and Leisure: A Microdata Approach for Germany

Beznoska

2014

SSRN Journal

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“…The use of the Stone price index has been shown to be inappropriate as it makes the estimated parameters inconsistent (Moschini 1995). Moschini attributes this problem to the fact that the Stone price index does not satisfy what Diewert (1987) calls the commensurability property and suggests that the problem may be solved by using a price index that satisfies this property.…”

Section: Methodsmentioning

confidence: 99%

“…Moschini attributes this problem to the fact that the Stone price index does not satisfy what Diewert (1987) calls the commensurability property and suggests that the problem may be solved by using a price index that satisfies this property. Moschini (1995) suggests several other price indices that satisfy this property which may be used to keep the specification of the almost ideal demand system linear. He also shows that these indices perform like the translog index in a Monte Carlo experiment.…”

Section: Methodsmentioning

confidence: 99%

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Modelling consumer's behaviour of the meat consumption in Slovakia

Prokeinová¹,

Hanová²

2016

AGR ECON-CZECH

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One of the primary factors affecting the food consumption patterns is the consumers' ability to purchase food. The last two decades have witnessed major increases in the per capita income levels of households all over the world.A question that arises in our research is whether economic factors are still the only factors that determine the world consumption, especially in Slovakia.In this regard, it is important to take note of the studies of Bansback (1995), Huston (1999), Braschler (1983 and Dickinson et al. (2003), who showed that the non-economic factors (i.e. non price/income factors) are becoming more important in the recent period in determining the consumers' purchasing decisions. For example, in a study by Bansback (1995) on the demand for meat in the EU, he showed that, for the period 1955 to 1979, price and income factors accounted for a higher proportion of the explanation of the changes in meat consumption than for the period 1975 to 1994.Demand, the influence of which on the whole system of production, processing, and distribution of agriproducts is constantly increasing, is a decisive factor determining the amount and quality of agricultural production, as well as the market price conditions and costs. The finalizing chain links, which further their interests in the pre-production phases and input sectors of the food production system, achieve the decisive position. Consumer demand can be considered the primary one. The demand of consumers crucially influences the amount and structure of production and supply, both in time and space.In order to achieve success in the domestic and foreign market, producers and distributors should be aware of the consumer behaviour, and have a good command of efficient methods of influencing it to gain the benefit. Consumers make daily many decisions about their purchase. Nagyová et al. (2007) state that the majority of big traders pay their careful attention to receiving the information about their consumers' behaviour -where, when, how, how much, and why they do their shopping. The identification of the key factors influencing the demand on the consumers' level of the product vertical line is a conditio sine qua non of the demand analysis. It is based on the theory of Modelling consumer's behaviour of the meat consumption in SlovakiaRenata BENDA PROKEINOVA, Martina HANOVA Department of Statistics and Operation Research, Faculty of Economics and Management, Slovak University of Agriculture in Nitra, Nitra, Slovak RepublicAbstract: Th ere exists a plenty extensive theoretical and empirical literature on what determines the consumption levels over time and across countries, but less research into the changes in the consumption patterns (i.e. the mix of diff erent goods and services that is purchased). To better understand how changing incomes and prices infl uenced the consumption patterns, the contribution estimates the Almost Ideal Demand System (AIDS) models. Th e aim of the paper is to fi nd patterns and preference changes in the consumer demand for meat in Slovak...

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“…This stone price was used in the model for estimation of non-linear form of the AIDS model in linear form. Although some economists like Moschini (1995), Asche and Wessels (1997) criticize and felled that price index may lead to introduction of measurement errors; in spite of the fact stone price is used.…”

Section: Stagementioning

confidence: 99%