Income Elasticity of Environmental Amenities

Abstract:     
In this paper we are concerned with the estimation of income elasticities of environmental amenities. The novelty is the application of econometric methods that take into account the problem of measurement errors when estimating these elasticities, which are common in microeconomic data and are not usually considered in the applied literature related with this issue. Our aim is to discuss whether the measurement error has significant effects on the elasticities. Data from the Expenditure Budget Survey of Uruguay (1996) are used.

Note: Readers need Scientific Workplace fonts to be installed for electronic document to be fully readable.

Number of Pages in PDF File: 24

Keywords: environmental goods, demand

JEL Classification: D0, D1

working papers series