The analysis of collusion in infinitely repeated Cournot oligopoly games has generally assumed that demand is linear, but this note uses constant−elasticity demand functions to investigate how the elasticity of demand affects the sustainability of collusion. Citation: Collie, David, (2004) "Collusion and the elasticity of demand." Economics Bulletin, Vol. 12, No. 3 pp. 1−6 Submitted: January 22...

analysis of the transactions demand formoney. The commodity-demand elasticity withrespect to the real interest rate, b , , was set tounity because, of all (equally arbitrary) values,unity is the most straightforward choice. (Econo-metric evidence currently available does notprovide direct knowledge of this elasticity.) Therelative sizes of the disturbances give consi...

abstract: on december 2010, the government of iran ended the decades-long subsidy program for bread and energy products and launched the targeted subsidy reform program that considerably raised prices of food products. the objective of the study was to measure welfare impacts of food price changes on iranian urban households between two survey data of 2009/10 and 2011/12 which were taken from i...

The capital income share exceeds the capital output elasticity if capital owners extract rents. Based on a sample of 111 countries during the period 1970-2010, this paper provides estimates of the capital output elasticity and compares these to countries' capital income shares. Three findings arise: (i) for the average country in the sample, the capital income share significantly exceeds the ca...

Demand theory can be applied to analyse how a human or animal consumer changes her selection of commodities within a certain budget in response to changes in price of those commodities. This change in consumption assessed over a range of prices is defined as demand elasticity. Previously, income-compensated and income-uncompensated price changes have been investigated using human and animal con...

The decline of China's energy intensity slowed since 2000. During 2002–2005 it actually increased, reversing the long-term trend. Therefore, it is important to identify drivers of the fluctuation of energy intensity. We use input–output structural decomposition analysis to investigate the contributions of changes in energy mix, sectoral energy efficiency, production structure, final demand stru...

In this paper, I argue that the two theoretical prerequisites of balanced growth purely labor augmenting technical progress and a unitary capital-labor elasticity are inconsistent with long-run evidence from a simple decomposition of the post-war U.S. economy into heterogeneous industries. My decomposition is motivated by empirical evidence that the degree of substitution between capital and la...