This is conceptually different from the
price elasticities reported in this paper and should be interpreted as the effect of a change in each person's previous year plan premium on the sum of the joint probabilities of all possible combinations of previous and current year plans that involve a switch.
For the estimation of average income and
price elasticities and average consumer welfare loss, a representative in each income quartile in 1992 is constructed using means of all relevant variables.
From the computed share elasticities it is possible to obtain the familiar quantity elasticities, as a simple relationship exists between them.(23) While all the
price elasticities we present in Part A of Table 4 are the familiar quantity elasticities, the household size and total expenditure elasticities are share elasticities.
We find negative energy cross-price elasticities around -0.2 and water
price elasticities in the order of -0.1 or smaller.
This potential results brom the different
price elasticities of demand across physician services.
First, our basic interest is in estimating disaggregate
price elasticities of demand, which are unit-independent parameters that indicate the responsiveness of demand to changes in relevant prices.
If the prices of other goods or lottery games are considered in the empirical-demand function, then the sum of all
price elasticities (own price and cross prices) is restricted to be equal to -1.
(7) The gasoline
price elasticities in these estimates are -0.5 and -0.4.
With regard to cross
price elasticities, Pindyck and Rubinfeld (2005, p.
Hicks own and cross
price elasticities of demand for input i with respect to its market price turns out