Estimation of own- and cross-price elasticities of disaggregated imported and domestic goods in Russia

Nadezhda Ivanova

EERC Working Paper Series from EERC Research Network, Russia and CIS

Abstract: The paper employs panel data analysis to estimate price and income elasticities for disaggregated domestic and imported goods using the Budget Survey of Russian households and prices of imported and domestic goods in Russia. The project is implemented using two types of data: the national level data for average households and households differentiated by income, and the data for the average regional households. Three different specifications of the demand equations: the double-logarithmic, the Linear Approximation to the AIDS, and the specification derived from the maximization of the CES utility function, are estimated for eight categories of traded non-food goods. The application of the instrumental-variable estimators to the regional data enables the endogeneity biases of the elasticity coefficients to be substantially corrected. The results of estimations of elasticities of demand for domestic and imported goods obtained for households differentiated by income indicate certain differences between estimated elasticities. This fact may be important for evaluating the impact of implementation of price and tariff policies on consumers with different levels of income.

Keywords: Russia; imported and import-competing domestic goods; price and income elasticities of demand; Armington elasticities; household expenditures; Russian regions; income deciles. (search for similar items in EconPapers)
JEL-codes: C23 D12 F14 I32 R15 (search for similar items in EconPapers)
Date: 2005-10-18
New Economics Papers: this item is included in nep-int and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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