Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Jan, 1966, Volume 34, Issue 1

The Price Elasticity of Liquor in the U.S. and a Simple Method of Determination<193:TPEOLI>2.0.CO;2-5
p. 193-205

Julian L. Simon

Arc elasticity is estimated for liquor by simply comparing state sales before and after price increases, standardized by states in which price did not change. The technique can be used wherever there are several economic units independent with respect to price changes; it allows causal interpretation and it permits comparison of various length-of-run elasticities.

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