price and income elasticities
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2021 ◽  
Vol 9 (3) ◽  
pp. 357-367
Author(s):  
Hanna Sri Meiliani Uli Simangunsong ◽  
Bintang Charles Hamonangan Simangunsong ◽  
Elisa Ganda Togu Manurung

The export value of Indonesia’s wooden furniture was sharply decreased by about 31.9% over the period in 2007-2018. On the other hand, global wooden furniture export was increased by 5.8% during the same period. Understanding the behavior of the demand side of Indonesia’s wooden furniture exports that is reflected by its relative price and income elasticities is needed for the policy development of Indonesia’s wooden furniture industry in the future. The objective of this study was to estimate the export demand function of Indonesia wooden furniture using a panel data regression model. Three types of panel data models, such as pooled ordinary least squares model, fixed-effects model, and random effects model, were investigated. The results showed that the export demand function of Indonesia wooden furniture could be well estimated using the fixed effects model. Relative price elasticity and income elasticity were -0.45 and 0.8, respectively. The adjusted R2 value obtained was 0.99. Keywords: export demand function, panel data regression, wooden furniture


2021 ◽  
Author(s):  
Maulana Malik Sebdo Aji ◽  
Nuri Nasriyah

This study aims to analyze the general picture of food consumption and food demandresponse to changes in income, prices, demographic variable, and the impact of rising foodprices on household welfare in household food insecure areas ofSumatera. This study uses rawdata obtained from 2018 The National Socio-Economic Survey (Susenas) BPS-Statistics. Thesample comprises 12,606 households in Sumatera’s food-insecure areas. A Quadratic AlmostIdeal Demand System (QUAIDS) is employed to estimate price and income elasticities, as wellas the impact of demographic and geographical factors on food demand patterns.Compensating Variation (CV) is used to estimate changes in household welfare due to anincrease in food prices. Ten aggregate commodity groups were chosen for this analysis: rice;non-rice grains and tubers, fish, shrimp, squid, shellfish; meat; eggs and milk; vegetables, fruitand nuts; oil and coconut; prepared food; other consumption; and cigarettes and tobacco. Theresults show that the higher the increase in food prices, the more reduction in householdwelfare. The proportion of household expenditure in Sumatera's food-insecure areas isdominated by food consumption. The proportion of household food expenditure in Sumatera'sfood-insecure areas is still dominated by food expenditure. The income elasticity of all foodgroups is positive. Meanwhile, the value of the price elasticity of the entire food group isnegative and to interpret it is absolute so it is positive. The value of cross-price elasticity variesbetween food groups. Income, price, and demographic variables except head of household sexand poverty status have an effect on the pattern of food consumption. An increase in foodprices reduces household welfare. Policy advice for the government is to increase the incomeof the household in Sumatera food-insecurity area, maintain price stability or reduce foodprices.


2021 ◽  
Vol 71 ◽  
pp. 101250
Author(s):  
Luís Oscar Silva Martins ◽  
Inara Rosa Amorim ◽  
Vinícius de Araújo Mendes ◽  
Marcelo Santana Silva ◽  
Francisco Gaudêncio Mendonça Freires ◽  
...  

Author(s):  
Samira Rousselière ◽  
Gaëlle Petit ◽  
Thomas Coisnon ◽  
Anne Musson ◽  
Damien Rousselière

2021 ◽  
Vol 11 (2) ◽  
pp. 1
Author(s):  
Eshagh Mansourkiaee ◽  
Hussein Moghaddam

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. 


2021 ◽  
Vol 13 (13) ◽  
pp. 7242
Author(s):  
Seul-Ye Lim ◽  
Jeoung-Sik Min ◽  
Seung-Hoon Yoo

Since the price for residential heat (RH) from district heating system in South Korea is regulated by the government rather than being freely determined in the market, it is difficult to estimate the demand function for RH properly using the distorted market data. Thus, undistorted data on price and demand are required in obtaining the demand function. This article tries to estimate the demand function for RH by applying the price sensitivity measurement (PSM) technique, with some variation, and then use this to obtain information about the price and income elasticities. To this end, in the PSM survey 1000 households were first asked about their consumption of RH and their expenditure on that consumption and then asked about how much they would lower their demand for RH in response to four hypothetical increases in the price for RH (10%, 20%, 50%, and 100%). Thus, five sets of price and consumption of RH were available for each household. The demand function for RH was estimated using a total of 5000 observations. The price and income elasticities were estimated with statistical significance to be about −0.478 and 0.033, respectively. These values can be utilized in decision-making and/or policy-making related to RH management.


2021 ◽  
Vol 65 (2) ◽  
pp. 238-252
Author(s):  
Saada Abdullahi ◽  

This paper examines the determinants of food import demand in Africa taking the case of Nigeria using the ARDL bounds testing approach. Specifically, the study aims to estimates the short run and long run price and income elasticities of food import demand in Nigeria. The paper used annual time series data over the period 1981 to 2019. The empirical result indicates the existence of a long run equilibrium relationship between food import demand and its determinants. The long run price and income elasticities are -4.57% and 5.57%, respectively. The result shows that population and food production exert significant influence in determining food import demand in both the short run and long run while exchange rate is insignificant in the long run. The paper recommends that price and income-oriented policies will be effective measures in controlling food import demand in Nigeria.


2021 ◽  
Author(s):  
◽  
Jaime Luke

This study estimates domestic disappearance equations for the six main pork primal cuts (belly, butt, ham, loin, picnic, and rib) to determine the own-price, cross-price, and income elasticities for each cut. These equations were utilized to develop an economic model of the pork industry that was used to determine the impacts that various trade scenarios could have on monthly disappearance, production, exports, and cutout values both for each primal cut and pork as a whole. It was found that the own-price elasticity of bellies was most inelastic and of loins was least inelastic. Of the primal cuts, decreasing exports of bellies had the most detrimental impact on the pork cutout value. Of the main pork exports markets, decreasing exports to China had the most detrimental impact on the pork cutout value.


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