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Income distribution and aggregation/disaggregation biases in the measurement of consumer demand elasticities

Authors
Journal
Economics Letters
0165-1765
Publisher
Elsevier
Publication Date
Volume
73
Issue
1
Identifiers
DOI: 10.1016/s0165-1765(01)00461-x
Keywords
  • Consumer Demand Elasticities
  • Aggregation Bias

Abstract

Abstract We investigate the issue of aggregation and disaggregation biases in demand elasticities. Drawing on income distribution data for seven countries we calculate the likely range of differences between elasticities evaluated at average income and corresponding aggregate average elasticities.

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