Income Elasticity of Environmental Amenities
Andrés Pereyra () and
Maximo Rossi ()
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Andrés Pereyra: Departmento de Economía, Facultad de Ciencias Sociales, Universidad de la República
No 200, Documentos de Trabajo (working papers) from Department of Economics - dECON
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 are common in microeconomic data and are not usually considered in the applied literature related with this issue. Our aim is to discuss whether the measurement error has signi…cant e¤ects on the elasticities. Data from the Expenditure Budget Survey of Uruguay (1996) are used.
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