Household demand in Turkey : an application of almost ideal demand system with spatial cost index
Joint Authors
Source
Economic Research Forum : Working Paper Series
Issue
Vol. 2002, Issue 201-240 (31 Dec. 2002)8 p.
Publisher
Economic Research Forum for the Arab Countries Iran and Turkey
Publication Date
2002-12-31
Country of Publication
Egypt
No. of Pages
8
Main Subjects
Topics
Abstract EN
A common difficulty in estimating demand functions for developing countries is the lack of time series data.
With the available cross-sectional data resulting from extensive surveys on households, most researchers concentrated on the estimation of expenditure elasticities and ignored the price elasticities.
Obviously, the results of this kind of partial analysis may not be very reliable for policy design.
In this paper, a practical solution is provided by observing that regularly collected data on the cost of grouped commodity bundles across regions can reflect the spatial variation in prices and thus can be used as a proxy for the prices.
As compared to previous studies estimating only the expenditure elasticities for Turkey, our results are different, in some cases with large margins.
Thus, as expected, incorporation of prices into the demand analysis is vital not only in obtaining the price elasticities, but also in getting reliable estimates of the expenditure elasticities.
American Psychological Association (APA)
Alpay, Savas& Koc, Ali. 2002. Household demand in Turkey : an application of almost ideal demand system with spatial cost index. Economic Research Forum : Working Paper Series،Vol. 2002, no. 201-240.
https://search.emarefa.net/detail/BIM-148982
Modern Language Association (MLA)
Alpay, Savas& Koc, Ali. Household demand in Turkey : an application of almost ideal demand system with spatial cost index. Economic Research Forum : Working Paper Series No. 201-240 (Dec. 2002).
https://search.emarefa.net/detail/BIM-148982
American Medical Association (AMA)
Alpay, Savas& Koc, Ali. Household demand in Turkey : an application of almost ideal demand system with spatial cost index. Economic Research Forum : Working Paper Series. 2002. Vol. 2002, no. 201-240.
https://search.emarefa.net/detail/BIM-148982
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references.
Record ID
BIM-148982