Demand for nondurable goods: a shortcut to estimating long-run price elasticities

• 成果类型: Article
• 署名作者: Perrone, Helena
• 署名单位: Pompeu Fabra University; Barcelona School of Economics
• 刊物名称: RAND JOURNAL OF ECONOMICS
• ISSN/ISSBN: 0741-6261
• DOI: 10.1111/1756-2171.12194
• 发表日期: 2017
• 页码: 856-873
• 关键词: consumer inventory; sales

摘要

When consumers stockpile, static demand models overestimate long-term price responses. This article presents a dynamic model of demand with consumer inventories and proposes a shortcut to estimate the long-run price elasticities without having to solve the dynamic program. Using French data on food purchases, I find elasticities consistent with those that result from the full-blown estimations found in the literature.