scholarly journals Income elasticity of demand within individual consumer groups and the level of income elasticity of the entire market demand 

2012 ◽  
Vol 52 (No. 9) ◽  
pp. 412-417
Author(s):  
P. Syrovátka
Keyword(s):  
Consumer Behaviour ◽  
Income Elasticity ◽  
Meat Products ◽  
Market Demand ◽  
Demand Functions ◽  
Elasticity Of Demand ◽  
Income Elasticities ◽  
Aggregation Equation ◽  
Application Potential ◽  
Income Elasticity Of Demand

The paper is focused on the derivation of the mathematical relationship among the income-elasticity level of the entire market demand and the income-elasticity values of the demand functions of the consumers’ groups buying on the defined market. The determination of the mathematical term was based on the linearity of the relevant demand functions. Under the linearity assumption, the income elasticity coefficient of the entire market demand equals the weighted sum of the income-demand elasticities of the differentiated consumer groups buying on the given market. The weights in the aggregation formula are defined as the related demand shares, i.e. as the proportions of the groups’ demands to the entire market demand. The derived aggregation equation is quite held if no demand interactions (e.g. the snob or fashion effect) are recorded among differentiated consumers’ groups. The derived formula was examined by using empirical data about the consumer behaviour of Czech households in the market of meat and meat products (Czech Statistical Office). However, the application potential of the achieved term for the income-elasticity aggregations is much broader within the consumer-behaviour analysis. In addition to the subject aggregations of the demand functions, we can also apply the derived formula for the analysis and estimations of the income elasticities within the demand-object aggregations, i.e. the multistage analysis of the income elasticity of consumer demand. Another possibility of the use of the aggregation equation is for the evaluations and estimations of the income elasticity of the region-demand functions in relation to the subregions’ demands or reversely.

Income elasticity of demand for tourism at Fulufjället National Park

2017 ◽  
Vol 24 (1) ◽  
pp. 51-63 ◽  
Author(s):  
Peter Fredman ◽  
Daniel Wikström
Keyword(s):  
National Parks ◽  
Low Income ◽  
National Park ◽  
Income Elasticity ◽  
Tourism Industry ◽  
Elasticity Of Demand ◽  
Income Elasticities ◽  
Tourism Product ◽  
Attraction System ◽  
Income Elasticity Of Demand

National Parks are significant markers in the tourism attraction system and represent an important supply of recreation opportunities for the clients of the nature-based tourism industry. In this study, we analyze income elasticities among visitors from two major nationalities at Fulufjället National Park (FNP)—a cross-boundary park between Sweden and Norway—to see if this tourism product is a luxury or not. Modeling demand with a Tobit model, we find that visiting this National Park is close to a luxury, but results also show that elasticities differ across both income and nationality: FNP is more likely to be a luxury good among low-income Germans and high-income Swedes. The article concludes with a discussion on policy and management implications from these results.

Is Indonesia's growth rate balance-of-payments-constrained? A time-varying estimation approach

2019 ◽  
Vol 7 (4) ◽  
pp. 537-553
Author(s):  
Jesus Felipe ◽  
Matteo Lanzafarne ◽  
Gemma Estrada
Keyword(s):  
Growth Rate ◽  
Structural Changes ◽  
Income Elasticity ◽  
Value Added ◽  
Balance Of Payments ◽  
Elasticity Of Demand ◽  
Income Elasticities ◽  
Employment Share ◽  
Fixed Capital Formation ◽  
Income Elasticity Of Demand

This paper analyses the performance of Indonesia's economy since the early 1980s using Thirlwall's balance-of-payments-constrained (BoPC) growth model, estimated in state-space form to take account of the varying nature of the income elasticities of demand for exports and imports. Results indicate that after peaking in the mid 1980s at above 10 percent, Indonesia's BoPC growth rate has declined significantly, to about 3 percent in recent years. This is the result of changes in the three components of this growth rate: the income elasticities of demand for exports and imports, and the growth rate of world income, all three significantly lower. Especially worrisome for Indonesia's future is the decline in the income elasticity of demand for exports, a variable that summarizes the non-price competitiveness of its exports. This is the consequence of the lack of progress in upgrading the export basket and increasing its sophistication, with natural resources and low value-added manufacturing still dominating the country's exports. Focusing on the two income elasticities, the analysis shows that their determinants are variables that proxy the economy's structural changes (for example, the manufacturing employment share) and within-sector productivity growth (for example, complexity of the economy, gross fixed capital formation as a share of GDP).

scholarly journals Modelling consumer’s behaviour of the meat consumption in Slovakia

2016 ◽  
Vol 62 (No. 5) ◽  
pp. 235-245
Author(s):  
R. Benda Prokeinova ◽  
M. Hanova
Keyword(s):  
Consumer Behaviour ◽  
Income Elasticity ◽  
Consumption Patterns ◽  
Demand Elasticity ◽  
Demand System ◽  
Empirical Literature ◽  
Goods And Services ◽  
Elasticity Of Demand ◽  
Normal Goods ◽  
Income Elasticity Of Demand

There exists a plenty extensive theoretical and empirical literature on what determines the consumption levels over time and across countries, but less research into the changes in the consumption patterns (i.e. the mix of different goods and services that is purchased). To better understand how changing incomes and prices influenced the consumption patterns, the contribution estimates the Almost Ideal Demand System (AIDS) models. The aim of the paper is to find patterns and preference changes in the consumer demand for meat in Slovakia. From the methodological aspect, there were used important items of the demand, and for the consumer behaviour analysis, there were computed elasticity coefficients by using the model AIDS. The coefficients of the price and income demand elasticity were determined. The computed elasticities showed that all meat items had a positive income elasticity of demand which implies that they were normal goods. Beef and pork were expenditure (income) elastic and hence could be considered as a luxury, while poultry and fish were income inelastic meaning that those were of necessity.

scholarly journals The Income Elasticity of Gambling in Australia and New Zealand

2015 ◽  
Vol 8 ◽  
Author(s):  
Jamie Davies
Keyword(s):  
New Zealand ◽  
Income Elasticity ◽  
Luxury Good ◽  
Gaming Industry ◽  
Elasticity Of Demand ◽  
Income Elasticities ◽  
Industry Sector ◽  
Alternate Hypothesis ◽  
Australian Bureau Of Statistics ◽  
Income Elasticity Of Demand

This paper analyses disposable income as it relates to consumer demand for gambling products in Australia and New Zealand from Financial years (FY) 1998 to 2008. The hypothesis is that income elasticity of demand for gambling products is greater than one i.e. gambling products are a luxury good. The alternate hypothesis is that the income elasticity of demand for gambling products are less than one and are classed as either necessity or inferior goods. Data compiled by the Queensland Treasury and Trade department, the Australian Bureau of Statistics, Statistics New Zealand and the New Zealand Department of Internal Affairs was used to calculate income elasticities for all gambling products. The results indicate that income elasticity for gambling products varies over time and is greater than one pre FY2003 and less than one post FY2003. However, once the change in market share of different gambling products and the large increase in supply in the gaming industry sector (pre FY2003) was accounted for, income elasticities were estimated to be less than one in support of the alternate hypothesis.

scholarly journals ANALISIS PERMINTAAN KEDELAI DI INDONESIA

2017 ◽  
Vol 12 (1) ◽  
pp. 42
Author(s):  
Septi Rostika Anjani ◽  
Dwidjono Hadi Darwanto ◽  
Jangkung Handoyo Mulyo
Keyword(s):  
Regression Analysis ◽  
Capita Income ◽  
Income Elasticity ◽  
Descriptive Analysis ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Per Capita Income ◽  
Elasticity Of Demand ◽  
Per Capita ◽  
Income Elasticity Of Demand

This study aims to analyze the factors that influence the demand of soybean in Indonesia. The research method uses descriptive analysis of secondary data which includes the price of imported soybeans, the price of chicken, per capita  income,  the rate of inflation and import tariff policy  year period 1980-2013 which sourced from FAO  and  other  sources.  Estimation  of  demand  function  using  multiple  linear regression  analysis  were  transformed  in  the  form  of  natural  logarithm.  Regression analysis showed that soybean demand in Indonesia was influenced partially by prices of chicken, per capita income, and the rate of inflation. The price elasticity of demand of soybean in Indonesia is inelastic, that is equal 0,22. While the income elasticity of demand  for  soybeans  is  positive  which  means  that  soy  is  a  staple  item  for  the Indonesian people.

scholarly journals The estimation of the Marshallian demand functions for the selected foodstuff groups according to the households income quartils

2009 ◽  
Vol 55 (No. 8) ◽  
pp. 406-412 ◽  
Author(s):  
I. Zentková ◽  
E. Hošková
Keyword(s):  
Healthy Eating ◽  
Consumer Behaviour ◽  
Meat Products ◽  
Food Group ◽  
Individual Income ◽  
Milk Products ◽  
Demand Functions ◽  
Food Market ◽  
Food Basket ◽  
The Individual

The article deals with the modelling of demand for the food group of milk and milk products and the food group of meat, meat products, eggs and fish using the Marshallian demand functions for the individual income quartils of Slovak households. The criterium for the foodstuff groups selection is their position in the Healthy Eating Pyramid which is one of the recommended optimal food basket forms. We suppose that the significant income differentiation of households will manifest as different consumer behaviour in the food market. The analysis confirms this hypothesis.

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