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HOUSEHOLD GASOLINE DEMAND IN THE U.S.: AN ESTIMATION OF A MULTIPLE-DISCRETE/CONTINUOUS CHOICE MODEL
Category: Econometrics
DEMAND ANALYSIS Tuesday 27th August 2002, 09:30 - 11:00, Room: 5.1
Session Chair(s):
Soren Leth-Petersen, AKF, Institute of Local Government Studies, DENMARK
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Abstract:
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This paper presents a multiple-discrete/continuous choice model. In this model consumers maximize utility by choosing the number and types of vehicles, several different fuel types and the quantity of gasoline. We estimate the model using household-level data. Compared to the traditional literature that uses aggregate data our estimates on own price elasticities are substantially lower and insignificant. Whereas time-series studies report elasticities of around -0.24 the corresponding figures in our study range between -0.17 and 0.16. Price variations virtually play no role when taking the multiple-discrete feature of gasoline demand into account.
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Find this file in the \Papers\1383\ folder of this CD-ROM.
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