Price Demand Elasticity and Potential Saving of Electric Subsidies: Empirical Evidence of Household Socio-Economic Survey

This paper examines the demand for attendance at National Football League (NFL) games using a rational addiction model to test the hypothesis that professional football displays the properties of a habit-forming good.  Rational addiction theory suggests that past and future consumption play a part in determining the current period’s consumption for habit-forming goods.  Additionally, we postulate the behavioral implications of profit-maximizing ticket pricing behavior by NFL teams.  Previous studies have been unable to detect pricing power by NFL teams.  Our model of pricing power allows us to identify theoretically- anticipated pricing behavior.  A pooled data set is collected using statistics from each NFL team from the 1983 to the 2008 seasons.  Current attendance is modeled as a function of team specific variables, including past and future attendance, ticket price, and team performance.  The model is estimated using Two-Stage Least Squares (2SLS).  We also treat the censored nature of ticket demand as NFL teams frequently experience sell-outs.  It is found that past and future attendance, winning percentage, the age of the stadium in which a team plays, and own-price demand elasticity influence attendance.  The fact that coefficients for past and future attendance are positive and significant in this analysis lends support to the notion that NFL fans display characteristics of rational addiction in their consumption behavior.  Further, we find evidence to support profit-maximizing behavior in ticket sales.

Download Full-text

Estimation of Demand Elasticity for Food Commodities in Java Island

JEJAK ◽

10.15294/jejak.v12i1.18430 ◽

2019 ◽

Vol 12 (1) ◽

pp. 54-67 ◽

Cited By ~ 1

Author(s):

Laksmi Yustika Devi ◽

R Y Kun Haribowo Purnomosidi

Keyword(s):

Urban Areas ◽

Chicken Meat ◽

Agricultural Products ◽

Consumption Patterns ◽

Demand Elasticity ◽

Fresh Fish ◽

Food Expenditure ◽

Economic Survey ◽

Food Commodities ◽

Prepared Food

Food availability is a development priority. Along with the increasing population growth, safe and nutritious food is rising. Analysis of food consumption patterns is needed to estimate the demand for agricultural products. This study attempts to analyze consumption patterns and food demand for several commodities in Java by using the 2010-2017 National Socio-Economic Survey data collected by Statistics Indonesia. Results of this study are: 1) the demand for quantity of rice is not elastic to income; (2) the demand for quantity of fresh fish, shrimp, beef and chicken meat is elastic to income; (3) the budget elasticity of fresh fish, shrimp, beef and chicken meat is also large, which means that households will increase the quantity and budget for these three commodities; (4) quantity and budget elasticity in rural are generally greater than urban; (5) in urban areas, budget elasticity is greater than quantity elasticity for all commodities, while in rural, budget elasticity is smaller than quantity elasticity, except for sugar, fresh fish and shrimp; (6) there has been a shift in the proportion of food expenditure on Java, e.g. the proportion of expenditures for grains decreases and the proportion of expenditures for prepared food and beverages increases.

Download Full-text

Measuring the Primary Impacts of Severance Taxation: A Spatial Equilibrium Approach

Northeastern Journal of Agricultural and Resource Economics ◽

10.1017/s0899367x00001598 ◽

1988 ◽

Vol 17 (1) ◽

pp. 15-22

Author(s):

Jill L. Findeis ◽

James S. Shortle ◽

Virginia M. Kibler

Keyword(s):

Equilibrium Model ◽

Demand Elasticity ◽

Tax Revenue ◽

Market Area ◽

Spatial Equilibrium ◽

Welfare Losses ◽

Spatial Equilibrium Model ◽

Equilibrium Approach ◽

Coal Market ◽

Price Demand

A spatial equilibrium model is used to quantify the effects of a severance tax on the Pennsylvania coal market. Two regions are identified: the Pennsylvania Market Area and an import/export region. The impacts on prices and quantities of coal supplied and demanded are found to be small. Little of the tax is exported from Pennsylvania, with a high proportion of the tax being passed back to Pennsylvania coal producers. Although the tax revenue exceeds the welfare losses in Pennsylvania, this result is very sensitive to the magnitude of the Pennsylvania own-price demand elasticity.

Download Full-text

Pola Permintaan Daging Tingkat Rumah Tangga di Indonesia: Analisa Data Mikro 2013

Jurnal Ekonomi dan Pembangunan Indonesia ◽

10.21002/jepi.v16i1.668 ◽

2015 ◽

Vol 16 (1) ◽

pp. 47-58 ◽

Cited By ~ 1

Author(s):

Sigit Nugroho ◽

Sita Wardhani Suparyono

Keyword(s):

Urban Education ◽

Least Square ◽

Demand Elasticity ◽

Demand System ◽

Almost Ideal Demand System ◽

Household Demand ◽

Meat Demand ◽

Demand Pattern ◽

Economic Survey ◽

Linear Least Square

AbstractThe objective of this study is to understand the meat demand pattern of household in Indonesia. This study used the 2013 National Socio-Economic Survey (SUSENAS) and Agriculrural Census (SP). The method used to understand the meat demand pattern is Quadratic Almost Ideal Demand System (QUAIDS) approach with Iterated Linear Least Square (ILLS) estimator. The result shows that urban, education, household size, and domestic meat supply have an influence on meat demand pattern and its elasticity. Keywords: Quadratic Almost Ideal Demand System (QUAIDS); Household Demand; Meat; Demand Elasticity AbstrakTujuan penelitian ini adalah untuk mempelajari pola permintaan daging di Indonesia. Penelitian ini menggunakan data survei rumah tangga SUSENAS 2013 dan Sensus Pertanian 2013 yang dikeluarkan oleh Badan Pusat Statistik. Penelitian ini menggunakan pendekatan Quadratic Almost Ideal Demand System (QUAIDS) dengan estimator Iterated Linear Least Square (ILLS). Hasil analisis menunjukkan bahwa terdapat pengaruh kota, pendidikan, ukuran rumah tangga, kelas pendapatan, dan suplai daging domestik terhadap pola permintaan dan elastisitas daging.

Download Full-text

Permintaan Pangan Sumber Karbohidrat di Indonesia

Analisis Kebijakan Pertanian ◽

10.21082/akp.v17n1.2019.13-26 ◽

2019 ◽

Vol 17 (1) ◽

pp. 13

Author(s):

Prasmita Dian Wijayati ◽

NFN Harianto ◽

Achmad Suryana

Keyword(s):

Food Consumption ◽

Wheat Flour ◽

National Level ◽

Household Head ◽

Demand Elasticity ◽

Food Sources ◽

Processed Food ◽

Carbohydrate Source ◽

Per Capita ◽

Price Demand

Rice is the main staple food for Indonesian population. At the same time, per capita consumption of wheat products has increased annually. One of main government policies related to food consumption is to accelerate food and nutrition diversification based on local food sources. Objective of this study was to understand demand for various carbohydrate food sources at household level by introducing socio-economic variables such as household size, wife working status, and characteristics of household head. This research used Susenas 2017 data at national level. Demand for food was estimated by the AIDS model. Rice was still as the most favorable carbohydrate source for Indonesian people. Bread and processed food were categorized as luxurious; while rice, wheat flour, cereals, and roots were as normal goods. Own-price demand elasticity for rice, wheat flour, cereals, and roots were elastic, meanwhile for bread and prepared foods were inelastic. Reducing per capita rice consumption, among others, should be conducted by increasing knowledge and awareness of household members of the importance of food consumption diversification. The government should be aware of the continuing increase in wheat flour imports in line with national economic growth due to high income elasticity for bread and processed food. AbstrakPangan sumber karbohidrat yang merupakan pemasok utama energi untuk menjalankan aktivitas sehari-hari penduduk Indonesia masih didominasi oleh beras. Bersamaan dengan itu, konsumsi pangan/kapita berasal dari gandum meningkat setiap tahunnya. Di fihak lain, Indonesia memiliki beragam pangan lokal sumber karbohidrat. Salah satu kebijakan utama pemerintah terkait konsumsi pangan adalah mempercepat diversifikasi pangan dan gizi berbasis pangan lokal. Tujuan penelitian ini adalah untuk mengetahui permintaan pangan berbagai komoditas sumber karbohidrat di tingkat rumah tangga dengan memasukkan variabel sosial ekonomi yaitu jumlah anggota rumah tangga, status istri bekerja, dan karakterestik kepala keluarga. Penelitian ini menggunakan data Susenas tahun 2017 untuk tingkat nasional dari BPS. Permintaan pangan dianalisis dengan menggunakan model AIDS. Hasil analisis mengkonfirmasi bahwa beras masih menjadi komoditas sumber karbohidrat yang paling diminati masyarakat. Roti dan makanan jadi merupakan golongan pangan mewah sedangkan beras, terigu, padi-padian, serta umbi merupakan barang normal. Elastisitas harga sendiri untuk permintaan komoditas beras, terigu, padi-padian, dan umbi bersifat inelastis sedangkan roti dan makanan jadi tergolong elastis. Dari hasil penelitian ini disarankan upaya pengurangan konsumsi beras/kapita diantaranya dilakukan melalui peningkatan pengetahuan dan kesadaran anggota rumah tangga mengenai manfaat diversifikasi pangan dan gizi untuk memelihara hidup sehat dan produktif. Pemerintah perlu mewaspadai berlanjutnya peningkatan impor terigu sejalan dengan pertembuhan ekonomi nasional karena roti dan makanan jadi memiliki elastisitas pendapatan yang tinggi.

Download Full-text

Physical and expenditure formulations of demand functions and evaluations of price demand elasticity

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis ◽

10.11118/actaun201260020379 ◽

2012 ◽

Vol 60 (2) ◽

pp. 379-382 ◽

Cited By ~ 1

Author(s):

Pavel Syrovátka

Keyword(s):

Price Elasticity ◽

Demand Elasticity ◽

Demand Functions ◽

Elasticity Of Demand ◽

Price Elasticity Of Demand ◽

Consumer Markets ◽

Physical Form ◽

Demand Sensitivity ◽

Price Demand ◽

The Relationship

Studies of the demand relations on the consumer markets bring much useful information. The concept of the elasticity coefficients is frequently used for the quantitative analysis of the demand sensitivity. Formulation of the investigated demand functions is very important for the evaluation of the demand elasticity. Within net consumer demand (consumer purchase), it is possible to differentiate the physical and expenditure forms of the demand functions. The paper is focused on the theoretical and methodological backgrounds of the evaluation of price-demand elasticity under the physical and expenditure definitions of the demand relationships. In this paper, the relationship between the coefficient of the price elasticity of demand in the physical form and the coefficient of the price elasticity of demand in the expenditure form is determined and studied. The derived formula is tested using the USDA database.

Download Full-text