Long-Run Demand for Energy Services: Income and Price Elasticities over Two           Hundred Years

A wide range of research has been developed in the empirical literature regarding income and price elasticities of health care expenditure (HCE). The results are mixed, as researchers employ different methodologies and data sources. The benefits of the panel data method, such as greater data variation, less collinearity, and more degrees of freedom, made it attractive among economists. However, the pooled mean group (PMG) method provides robust estimates compared to conventional methods, such as the mean group estimator and dynamic fixed-effects estimator. As such, this paper applies the PMG method to scrutinize the effect of income and price on U.S. health care consumption using a panel of 46 states. The income and price elasticities were found to be 0.85 and -0.48, respectively, which partially describes the recessionary decline in health care consumption following the Great Recession. In addition, the model reveals that the short-run income elasticity is smaller than the long-run. This confirms that U.S. health care consumption follows the permanent income hypothesis. Consequently, the short-run efficacy of public policies targeting HCE remains limited. The results of this paper suggest reconsidering and adjusting health care policies during a recession so as to avoid probable long-run adverse effects on HCE.

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Income and Price Elasticities of Crude Oil Demand in Pakistan

Global Business Review ◽

10.1177/0972150917713049 ◽

2017 ◽

Vol 18 (6) ◽

pp. 1373-1383 ◽

Cited By ~ 4

Author(s):

Khalil Jebran ◽

Abdullah ◽

Mahmoud Moustafa Elhabbaq ◽

Arshad Ali

Keyword(s):

Crude Oil ◽

Annual Data ◽

Bounds Testing ◽

Price Elasticities ◽

Distributed Lag ◽

Long Run ◽

Negative Effect ◽

Short Run ◽

Oil Demand ◽

Income And Price Elasticities

This study is an attempt to examine the income and price elasticities of crude oil demand in Pakistan using annual data from 1981 to 2013. The short-and long-run relationship was analysed by autoregressive distributed lag (ARDL) bounds testing approach. The results reveal that income and exchange rate show significant positive relationship with crude oil demand in short run as well as in long run. The analyses also show that crude oil price and domestic production have negative effect in both short and long run on crude oil demand. The income is found to be a strong determinant of crude oil demand in both short and long run. This study suggests that strategies would be formulated and adopted which may control the demand of crude oil without affecting the economic growth of Pakistan.

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Are long-run income and price elasticities of oil demand time-varying? New evidence from BRICS countries

Energy ◽

10.1016/j.energy.2021.120710 ◽

2021 ◽

Vol 229 ◽

pp. 120710

Author(s):

Mohammed I.Abu Eleyan ◽

Abdurrahman Nazif Çatık ◽

Mehmet Balcılar ◽

Esra Ballı

Keyword(s):

Time Varying ◽

Price Elasticities ◽

Brics Countries ◽

Long Run ◽

Oil Demand ◽

Income And Price Elasticities ◽

New Evidence

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Income and Price Elasticities by Nationality for Tourists in Denmark

Tourism Economics ◽

10.1177/135481669800400201 ◽

1998 ◽

Vol 4 (2) ◽

pp. 101-130 ◽

Cited By ~ 18

Author(s):

Thomas C. Jensen

Keyword(s):

Price Elasticity ◽

Income Elasticity ◽

Explanatory Variables ◽

Price Elasticities ◽

Currency Exchange ◽

Long Run ◽

Income And Price Elasticities ◽

Tourism Revenue

This paper presents estimates of income and price elasticities for the six most important nationalities visiting Denmark as tourists. The estimates are based on two different measures of the Danish tourism revenue: the number of nights spent and the currency exchange statistics. The explanatory variables are prices and income abroad. The estimates vary considerably across nationalities. For German tourists, who account for the largest share in Danish tourism, the estimates for price elasticities are quite high: the long-run price elasticity with respect to the prices in Denmark is close to −1.5 and the long-run income elasticity is found to be near 2.

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Long run apartment price dynamics in Swedish and German cities

Journal of European Real Estate Research ◽

10.1108/jerer-03-2020-0020 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Sviatlana Engerstam

Keyword(s):

Banking Sector ◽

Cointegration Analysis ◽

Price Dynamics ◽

Long Term Effects ◽

Content Type ◽

Macroeconomic Variables ◽

Price Elasticities ◽

Long Run ◽

German Cities

PurposeThis study examines the long term effects of macroeconomic fundamentals on apartment price dynamics in major metropolitan areas in Sweden and Germany.Design/methodology/approachThe main approach is panel cointegration analysis that allows to overcome certain data restrictions such as spatial heterogeneity, cross-sectional dependence, and non-stationary, but cointegrated data. The Swedish dataset includes three cities over a period of 23 years, while the German dataset includes seven cities for 29 years. Analysis of apartment price dynamics include population, disposable income, mortgage interest rate, and apartment stock as underlying macroeconomic variables in the model.FindingsThe empirical results indicate that apartment prices react more strongly on changes in fundamental factors in major Swedish cities than in German ones despite quite similar development of these macroeconomic variables in the long run in both countries. On one hand, overreactions in apartment price dynamics might be considered as the evidence of the price bubble building in Sweden. On the other hand, these two countries differ in institutional arrangements of the housing markets, and these differences might contribute to the size of apartment price elasticities from changes in fundamentals. These arrangements include various banking sector policies, such as mortgage financing and valuation approaches, as well as different government regulations of the housing market as, for example, rent control.Originality/valueIn distinction to the previous studies carried out on Swedish and German data for single-family houses, this study focuses on the apartment segment of the market and examines apartment price elasticities from a long term perspective. In addition, the results from this study highlight the differences between the two countries at the city level in an integrated long run equilibrium framework.

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Effect of the energy crisis on the elasticities of demand for forest products in OECD countries

Canadian Journal of Forest Research ◽

10.1139/x86-170 ◽

1986 ◽

Vol 16 (5) ◽

pp. 968-974 ◽

Cited By ~ 2

Author(s):

Joseph Buongiorno ◽

Ham Shee Chang

Keyword(s):

Gross Domestic Product ◽

Forest Products ◽

Energy Crisis ◽

Domestic Product ◽

Price Elasticities ◽

Pooled Data ◽

Demand Models ◽

Oil Embargo ◽

Income And Price Elasticities

The purpose of this paper was to test if there had been systematic changes in the income and price elasticities of demand for forest products after the first oil embargo of 1973. The test used pooled data from 10 OECD (Organization for Economic Cooperation and Development) countries between 1961 and 1981. Eight commodity groups were considered: coniferous sawn wood, nonconiferous sawn wood, plywood, particleboard, fibreboard, newsprint, other printing and writing paper, and other paper and paperboard. The demand models used were distributed lags on first logarithmic differences of income and price in each country and year. The hypothesis that the long-term elasticities of demand with respect to gross domestic product were the same from 1963 to 1981 as from 1974 to 1981 was rejected for coniferous sawn wood and printing and writing paper. Long-term price elasticities had also changed for the same commodities. A negative trend in the demand of coniferous sawn wood and particleboard, independent of prices or gross domestic product, appeared to have set in after 1973.

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Income and Price Elasticities in India's Trade

Vikalpa The Journal for Decision Makers ◽

10.1177/0256090919940202 ◽

1994 ◽

Vol 19 (2) ◽

pp. 13-20

Author(s):

G S Gupta ◽

H Keshava

Keyword(s):

Time Series ◽

Time Series Data ◽

Series Data ◽

Individual Country ◽

Price Elasticities ◽

The World ◽

Annual Time Series ◽

Income And Price Elasticities ◽

Annual Time

This article by G S Gupta and H Keshava estimates the export and import functions for India both at the aggregate (rest of the world) as well as the important individual country levels using annual time series data for the period 1960-61 through 1990-91.

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Pooling surveys in the estimation of income and price elasticities: An application to Tunisian households

Empirical Economics ◽

10.1007/s001810100126 ◽

2003 ◽

Vol 28 (1) ◽

pp. 181-201 ◽

Cited By ~ 3

Author(s):

Mohamed Ayadi ◽

Jaya Krishnakumar ◽

Mohamed Salah Matoussi

Keyword(s):

Price Elasticities ◽

Income And Price Elasticities

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A Uniform Substitute Demand Model with Varying Coefficients

Journal of Agricultural and Applied Economics ◽

10.1017/s1074070800027772 ◽

2000 ◽

Vol 32 (1) ◽

pp. 1-9 ◽

Cited By ~ 5

Author(s):

Mark G. Brown ◽

Jong-Yinq Lee

Keyword(s):

Orange Juice ◽

Demand System ◽

Demand Model ◽

Demand Modeling ◽

Price Elasticities ◽

Varying Coefficients ◽

Modeling Approach ◽

Income And Price Elasticities ◽

Over Time

AbstractThis study extends Batten's synthetic demand modeling approach to increase the flexibility of the uniform substitute specification of the Rotterdam demand system. Marginal propensities to consume (MPC) vary with budget shares and Slutsky coefficients are defined in terms of varying MPCs. An application of the model to orange-juice products shows that the pattern of income and price elasticities over time is much different than when MPCs are restricted to be constant.

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