Demand System Estimation in the Absence of Price Data: an Application of Stone-Lewbel Price Indices

Cesar E. Castellon, Tullaya Boonsaeng and Carlos Carpio

No 124819, 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington from Agricultural and Applied Economics Association

Abstract: Lewbel (1989) developed an approach for the construction of household level commodity price indices (Stone-Lewbel prices) using only budget shares and CPIs of the goods comprising the commodity groups. In this study, we consider three alternative CPIs for the construction of SL prices and the estimation of a demand system. The three CPIs consider are: monthly, quarterly and unity. Where the unity CPI is used to simulate a scenario where no price index information is available. Elasticities and marginal effect estimates from the demand models proved to be robust to the alternative CPIs considered in this study (even to the absence of one).

Keywords: Demand; and; Price; Analysis (search for similar items in EconPapers)
Pages: 32
Date: 2012
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea12:124819

DOI: 10.22004/ag.econ.124819

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