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A Comparison of Barten's Estimated Demand Elasticities With Those Obtained Using Frisch's Method

Robert Ayanian

Abstract

From knowledge of budget proportions, income elasticities, and the income elasticity of the marginal utility of income, point estimates of all direct and cross demand elasticities with respect to price may be easily computed for want-independent goods. Estimates obtained in this manner are without standard errors. One method of ascertaining the reliability of such estimates is to compare them, under varying conditions, with corresponding estimates whose standard errors are known, as is done herein.