Cazals, Catherine, Fève, Frédérique, Fève, Patrick and Florens, Jean-Pierre (2005) Simple Structural Econometrics of Price Elasticity. Economics Letters, 86 (1). pp. 1-6.

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Identification Number : 10.1016/j.econlet.2004.03.032


This paper delivers a methodology for the identification of the price elasticity of demand. The approach relies on a structural model of consumer behavior wherein demand and expenditure depend on a heterogeneity factor. We show that the structural parameters are not identified in the one-period case. Conversely, in a two-period case, the structural parameters, and thus the price elasticity of demand, are identified for each period.

Item Type: Article
Language: English
Date: January 2005
Refereed: Yes
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 18 Jan 2012 05:48
Last Modified: 02 Apr 2021 15:33
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