Pooling Surveys in the Estimation of Income and Price Elasticities: An Application to Tunisian Households

22 Pages Posted: 20 Nov 2014

See all articles by Mohamed Ayadi

Mohamed Ayadi

Institut Supérieur de Gestion

Jaya Krishnakumar

University of Geneva

Mohamed Salah Matoussi

University of Tunis

Date Written: 2003

Abstract

This paper presents a methodological extension of Deaton’s (1990) model for estimating price elasticities, by pooling Tunisian data from several surveys to improve the inter-cluster variability of unit values which is one of the key elements used in the derivation of these elasticities. Since the surveys cover a relatively long period, possible structural changes in consumption behaviour occurring over time are accounted for by postulating that certain response coefficients of the basic model vary from one survey to the other. The own price and cross price elasticities calculated using appropriate estimates of the extended model are satisfactory both from the economic point of view of their sign and the statistical point of view of their significance and superior to those obtained using a single survey.

Keywords: pooling cross-sections, consumer demand system, unit value, price elasticity

JEL Classification: D12

Suggested Citation

Ayadi, Mohamed and Krishnakumar, Jaya and Matoussi, Mohamed Salah, Pooling Surveys in the Estimation of Income and Price Elasticities: An Application to Tunisian Households (2003). Empirical Economics, Vol. 28, 2003, Available at SSRN: https://ssrn.com/abstract=2527008

Mohamed Ayadi

Institut Supérieur de Gestion ( email )

45 Rue de la Liberte, Cite Bouchoucha
Bardo, Tunis 2000
Tunisia

Jaya Krishnakumar (Contact Author)

University of Geneva ( email )

40 Bd. du Pont d'Arve
Genève 4, CH - 1211
Switzerland

Mohamed Salah Matoussi

University of Tunis ( email )

92, Rue 9 Avril
Tunis, 1938 -1007
Tunisia

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