Household Demand in Turkey: An Application of Almost Ideal Demand System with Spatial Cost Index

Savas Alpay () and Ali Koc
Additional contact information
Savas Alpay: Statistical Economic and Social Research and Training Centre for Islamic Countries (SESRTCIC)

No 226, Working Papers from Economic Research Forum

Abstract: A common difficulty in estimating demand functions for developing countries is the lack of time series data. With the available cross-sectional data resulting from extensive surveys on households, most researchers concentrated on the estimation of expenditure elasticities and ignored the price elasticities. Obviously, the results of this kind of partial analysis may not be very reliable for policy design. In this paper, a practical solution is provided by observing that regularly collected data on the cost of grouped commodity bundles across regions can reflect the spatial variation in prices and thus can be used as a proxy for the prices. As compared to previous studies estimating only the expenditure elasticities for Turkey, our results are different, in some cases with large margins. Thus, as expected, incorporation of prices into the demand analysis is vital not only in obtaining the price elasticities, but also in getting reliable estimates of the expenditure elasticities.

Pages: 7 pages
Date: 2002-09-12, Revised 2002-09-12
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Published by The Economic Research Forum (ERF)

Downloads: (external link)
http://erf.org.eg/wp-content/uploads/2017/05/0226.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://erf.org.eg/wp-content/uploads/2017/05/0226.pdf [301 Moved Permanently]--> https://erf.org.eg/wp-content/uploads/2017/05/0226.pdf)
http://bit.ly/2qKIwuF (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erg:wpaper:0226

Access Statistics for this paper

More papers in Working Papers from Economic Research Forum Contact information at EDIRC.
Bibliographic data for series maintained by Namees Nabeel ().