Naslov
Cigarette price elasticity – analysis of household budget surveys

Autori
Šodan, Slavko

Vrsta, podvrsta i kategorija rada
Poglavlja u knjigama, znanstveni

Knjiga
Accelerating Progress on Tobacco Taxes in Low- and-Middle Income Countries - Research on Economics of Tobacco and Tobacco Taxation, National Study: CROATIA

Urednik/ci
Aljinović Barać, Željana

Izdavač
Ekonomski fakultet Sveučilišta u Splitu

Grad
Split

Godina
2018

Raspon stranica
77-85

ISBN
978-953-281-082-0

Ključne riječi
cigarette price elasticity ; Deaton model ; AIDS model ; household budget survey

Sažetak
The individual household responses on cigarette expenditures and purchased quantities can be used to calculate the so-called unit value of a good, which then can be used as a price proxy. At the same time, the amount of data so provided is much greater (i.e. thousands of observations) than from time series (i.e. usually less than 50, and in our case even less than 20). However, while the unit value of a good depends on actual market prices, it cannot be used as direct substitute for prices as it also reflects consumers’ quality choices and the measurement error in quantity (John, 2008, p. 202). Exploiting the structure imposed by weak separability, Deaton (1988, 1997) has developed a method for estimating price elasticity using unit values that estimates and compensates for quality effects. Therefore, in this study we apply Deaton’s method, also known as the Almost Ideal Demand-System (AIDS), to obtain consistent estimation of the cigarette price elasticity using Croatian household expenditure data.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

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