In this paper we assess the relationship between the aggregate income elasticity of aggregate demand and individual income elasticities of demand. We show that the aggregate elasticity is equal to the mean of individual elasticities plus a covariance term. Consequently, the sign of this covariance term determines whether the aggregate elasticity overestimates or underestimates the mean of indiv...

Import demand elasticities are regularly used to compute trade restrictiveness indices, transform estimated effects of policies into ad-valorem equivalents, or judge on the prohibitive ...

The relative costs of trading different goods vary independently of the relative costs of producing them. The costs of trade are also often high. As a result, producer price elasticities of demand in economies that trade are usually much lower than purchaser price elasticities. Trade costs could thus explain why cross-country variation in the composition of output is much less sensitive to vari...

We develop a model of household demand for frequently purchased consumer goods that are branded, storable and subject to stochastic price fluctuations. Our framework accounts for how inventories and expectations of future prices affect current period purchase decisions. We estimate our model using scanner data for the ketchup category. Our results indicate that price expectations and the nature...

We utilise repeated cross sections of micro data from several countries, available from the Luxembourg Income Study, LIS, to estimate labour supply elasticities, both at the intensive and extensive margin. The benefit of the data is that it spans over four decades and includes a large number of tax reform episodes, with tax rate variation arising both from cross-sectional and country-level diff...

A missing element in public transport patronage prediction is often a matrix of direct and cross fare elasticities for specific fare classes. This paper employs a combined stated preference and revealed preference data set to obtain this type of matrix, reflecting the market environment for concession and non-concession travelers using public transport for short and long trips. A heteroskedasti...