Short-run price and income elasticity of gasoline demand: Evidence from Lebanon

Energy Policy ◽  
2012 ◽  
Vol 46 ◽  
pp. 109-115 ◽  
Author(s):  
Bernard Ben Sita ◽  
Walid Marrouch ◽  
Salah Abosedra
Keyword(s):  
Income Elasticity ◽  
Gasoline Demand ◽  
Short Run

scholarly journals Gasoline Demand Elasticities at the Backdrop of Lower Oil Prices: Fuel-Subsidizing Country Case

Energies ◽  
2020 ◽  
Vol 13 (24) ◽  
pp. 6752
Author(s):  
Jeyhun I. Mikayilov ◽  
Shahriyar Mukhtarov ◽  
Jeyhun Mammadov
Keyword(s):  
Price Elasticity ◽  
Income Elasticity ◽  
Policy Implications ◽  
Policy Makers ◽  
Gasoline Demand ◽  
Increase Energy Efficiency ◽  
Short Run ◽  
Income And Price Elasticities ◽  
Income Elasticity Of Demand ◽  
Over Time

This study investigates the income and price elasticities of gasoline demand for a fuel subsidizing country case, applying three different time-varying coefficient approaches to the data spanning the period from January 2002 to June 2018. The empirical estimations concluded a cointegration relationship between gasoline demand, income, and gasoline price. The income elasticity found ranges from 0.10 to 0.29, while the price elasticity remains constant over time, being −0.15. Income elasticity increases over time, slightly decreasing close to the end of the period, which is specific for a developing country. In the short run, gasoline demand does not respond to the changes in income and price. The policy implications are discussed based on the findings of the study. Research results show that since the income elasticity of demand is not constant, the use of constant elasticities obtained in previous studies might be misleading for policymaking purposes. An increase in income elasticity might be the cause of the inefficiency of the existing vehicles. The small price elasticity allows to say that if policy makers plan to reduce gasoline consumption then increasing its price would not substantially reduce the consumption. The current situation can be utilized to increase energy efficiency and implement eco-friendly technologies. For this purpose, the quality of existing transport modes can be improved. Meanwhile, to meet households’ needs, policies such as providing soft auto loans need to be formed to balance the recent drop in car sales.

The Income Elasticity of Gross Sports Betting Revenues in Nevada: Short-Run and Long-Run Estimates

2021 ◽  
pp. 152700252110369
Author(s):  
Ege Can ◽  
Mark W. Nichols
Keyword(s):  
Income Elasticity ◽  
Similar Rate ◽  
Sports Betting ◽  
Tax Base ◽  
Income Elasticities ◽  
Long Run ◽  
Sports Gambling ◽  
The Supreme Court ◽  
Short Run ◽  
State Income

In May 2018, the Supreme Court overturned the Professional and Amateur Sports Protection Act, thereby allowing all states to offer sports betting. Prior to this, Nevada was the only state with unrestricted sports betting. Using sports betting data from Nevada, we estimate long-run and short-run income elasticities to determine the growth and volatility of sports betting as a tax base. Sports gambling grows at a similar rate as state income and is stable and insensitive to short-run shocks to income. However, the amount of money kept by casinos, and hence the state, is small compared to other traditional tax bases.

Intergenerational Income Elasticities, Instrumental Variable Estimation, and Bracketing Strategies

2020 ◽  
Vol 50 (1) ◽  
pp. 1-46
Author(s):  
Pablo A. Mitnik
Keyword(s):  
Instrumental Variable ◽  
Income Elasticity ◽  
Geometric Mean ◽  
Panel Study ◽  
Generalized Method Of Moments ◽  
Ordinary Least Squares ◽  
Point Estimate ◽  
Set Estimation ◽  
Iv Estimation ◽  
Short Run

The fact that the intergenerational income elasticity (IGE)—the workhorse measure of economic mobility—is defined in terms of the geometric mean of children’s income generates serious methodological problems. This has led to a call to replace it with the IGE of the expectation, which requires developing the methodological knowledge necessary to estimate the latter with short-run measures of income. This article contributes to this aim. The author advances a “bracketing strategy” for the set estimation of the IGE of the expectation that is equivalent to that used to set estimate (rather than point estimate) the conventional IGE with estimates obtained with the ordinary least squares and instrumental variable (IV) estimators. The proposed bracketing strategy couples estimates generated with the Poisson pseudo–maximum likelihood estimator and a generalized method of moments IV estimator of the Poisson or exponential regression model. The author develops a generalized error-in-variables model for the IV estimation of the IGE of the expectation and compares it with the corresponding model underlying the IV estimation of the conventional IGE. By considering both bracketing strategies from the perspective of the partial-identification approach to inference, the author specifies how to construct confidence intervals for the IGEs, in particular when the upper bound is estimated more than once with different sets of instruments. Finally, using data from the Panel Study of Income Dynamics, the author shows that the bracketing strategies work as expected and assesses the information they generate and how this information varies across instruments and short-run measures of parental income. Three computer programs made available as companions to the article make the set estimation of IGEs, and statistical inference, very simple endeavors.

scholarly journals META-ANALYSIS OF MONEY DEMAND IN INDONESIA

2012 ◽  
Vol 15 (1) ◽  
pp. 41-62
Author(s):  
Galih Riyandi
Keyword(s):  
Money Demand ◽  
Opportunity Cost ◽  
Fixed Effects ◽  
Income Elasticity ◽  
Meta Analysis ◽  
Demand For Money ◽  
Cost Elasticity ◽  
Classification Code ◽  
Long Run ◽  
Short Run

Theory and empirical study about demand for money is the key feature in macroeconomics theory. The study about demand for money in Indonesia has been developing with various techniques. Its result in various analyses can be difficult in understanding behaviour of demand for money in Indonesia. This paper aims to find out the tendency of demand for money in Indonesia by analyzing long run and short run income elasticity and opportunity cost elasticity. We use fixed effects meta-analysis and unweighted average meta-analysis. The result shows that income elasticity and opportunity cost elasticity are consistent with theory of money demand. That result can be used as an empirical foundation to future study about demand for money in Indonesia.  Keywords: demand for money, meta analysis, fixed effects.JEL Classification code: E41, E52

scholarly journals Econometric Analysis of Residential Sector Gas Demand Elasticities in Gas Exporting Countries

2021 ◽  
Vol 11 (2) ◽  
pp. 1
Author(s):  
Eshagh Mansourkiaee ◽  
Hussein Moghaddam
Keyword(s):  
Price Elasticity ◽  
Income Elasticity ◽  
Bounds Testing ◽  
Short Term ◽  
Residential Sector ◽  
Price And Income Elasticities ◽  
Long Run ◽  
Short Run ◽  
Income And Price Elasticities ◽  
Price Policies

This paper examines how residential sector gas demand in gas exporting countries response to changes by taking into consideration the economic variables. For this purpose, the short and long-run price and income elasticities of residential sector gas demand in the GECF countries for 2000 and 2019 are measured. Using Cobb-Douglas functional form, this paper applies the bounds testing approach to co-integrate within the framework of ARDL (Autoregressive Distributed Lag). Findings of this research show that there is a significant long-run relationship in nine GECF countries, including Algeria, Egypt, Iran, Malaysia, Norway, Peru, Russia, Trinidad and Tobago and Venezuela, that use gas as a source of energy in their residential sector. On average, long-rung income elasticity for underlying countries is 2.65, while long-run price elasticity is negative and calculated at 0.79. This shows that in considered gas exporting countries, residential sector gas demand is very sensitive to income policies, while the price policies impact on demand is more limited. Furthermore, short-run income and price elasticities are estimated at 6.99 and -0.02 (near zero) respectively, which implies that natural gas is very inelastic to price, as a result,price policies are unable to make significant changes in demand over the short-term. Meanwhile, as expected short-run price elasticity is lower than long-run elasticities, indicating that gas exporting countries are more responsive to price in the long-term than in the short-term. Finally, it was found that most of the preferred models have empirical constancy over the sample period. 

scholarly journals ELASTISITAS PENDAPATAN WAJIB PAJAK (ELASTICITY OF TAXABLE INCOME) DI INDONESIA

KEBERLANJUTAN ◽  
2019 ◽  
Vol 4 (2) ◽  
pp. 1192
Author(s):  
Arif Nugrahanto
Keyword(s):  
Labor Supply ◽  
Income Elasticity ◽  
Secular Trend ◽  
Working Hours ◽  
Tax Rates ◽  
Net Income ◽  
Transfer Policy ◽  
Taxable Income ◽  
Elasticity Of Taxable Income ◽  
Short Run

AbstractThe responses of taxpayers due to the changes in tax rates have attracted the curiosity of many economists. The magnitude of taxpayers’ responses is substantially considered to be very importance in the formulation of tax and transfer policy (Giertz, 2009). The fundamental analysis on how to see the respond of taxpayers due to any changes in tax rates uses elasticity of labor supply, which estimates the changes of working hours with respect to the changes in tax rates. Because people’s response to a tax change may take several forms, including a labor supply response, elasticity of labor supply must be read carefully, as pertaining only to specific circumstances. Then, the elasticity of taxable income, which was originated by Lindsey (1986), is used and introduced to overcome such restrictions.Using very rich panel data of Indonesian taxpayers from 2007 to 2010, this study generates numerous findings about the elasticity of taxable income. The extent of taxpayers’ response deeply depends on how the secular trend of income is isolated and controlled. Without income control, the elasticity of taxable income is 0.289, while using a 10-spline of log of income, the extent is 0.368. Moreover, the study also uses net income as complement of the core estimation. This study identifies that the elasticity of taxable income in Indonesia is in the range of 0.302-0.368 depending on the income definition applied. The findings confirm with most literature on this subject and closely near to what was specified by Saez, et. al (2010) as “a consensus value.” But it should be underlined that these magnitudes are just in the short run period. This also found that the short run and medium period produce varying magnitudes. The medium run period calculation generates the number of close to zero. It might be due to the existence of income shifting, as stated by Goolsbee (2000). Another argument is myopic phenomenon. As taxpayers only focus on the situation that just happen surroundings them.The difference in the effect highpoints what Slemrod (2001) said that the magnitude of reported income elasticity is not an unchanged parameter; indeed, it is subject to government policy. Moreover, the surroundings of the tax reform and after all may also have influences.  

The Income Elasticity of Gross Casino Revenues: Short—Run and Long—Run Estimates

2008 ◽  
Vol 61 (4, Part 1) ◽  
pp. 635-652 ◽  
Author(s):  
Mark W. Nichols ◽  
Mehmet Serkan Tosun
Keyword(s):  
Income Elasticity ◽  
Long Run ◽  
Short Run
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