Cross-section data, disequilibrium situations and estimated coefficients: evidence from car ownership demand

Anna Matas () and Josep-Lluis Raymond ()
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Josep-Lluis Raymond: Grup d'Anàlisi Econòmica Aplicada (GEAP), Departament d'Economia i Història Econòmica, Universitat Autònoma de Barcelona

No XREAP2007-04, Working Papers from Xarxa de Referència en Economia Aplicada (XREAP)

Abstract: The objective of this paper is to analyse to what extent the use of cross-section data will distort the estimated elasticities for car ownership demand when the observed variables do not correspond to a state equilibrium for some individuals in the sample. Our proposal consists of approximating the equilibrium values of the observed variables by constructing a pseudo-panel data set which entails averaging individuals observed at different points of time into cohorts. The results show that individual and aggregate data lead to almost the same value for income elasticity, whereas with respect to working adult elasticity the similarity is less pronounced.

Keywords: Cross-section; Pseudo panel; Disequilibrium. (search for similar items in EconPapers)
JEL-codes: C13 C21 (search for similar items in EconPapers)
Pages: 18 pages
Date: 2007-06, Revised 2007-06
References: View complete reference list from CitEc
Citations: View citations in EconPapers (32)

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http://www.xreap.cat/RePEc/xrp/pdf/XREAP2007-04.pdf First version, 2007 (application/pdf)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2007-04.pdf Revised version, 2007 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:xrp:wpaper:xreap2007-04

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