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The consistent estimation of income elasticity of environmental amenities in Uruguay

Daniel Miles, Andrés Pereyra and Maximo Rossi ()
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Andrés Pereyra: Universidad de Uruguay

Estudios Económicos, 2002, vol. 17, issue 1, pages 67-89

Abstract: In this paper we are concerned with the estimation of income elasticities of environmental amenities. The novelty is the application of econometric methods that take into account the problem of measurement errors when estimating these elasticities, which is common in microeconomic data and is not usually considered in the applied literature related to this issue. Our aim is to discuss whether measurement errors have significant effects on income elasticities. Data from the { Expenditure Budget Survey of Uruguay, 1994 - 1995, are used.

Date: 2002
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