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We develop a method for estimation of price reactions using unit value data which exploits the implicit links between quantity and unit value choices. This allows us to combine appealing Engel curve specifications with a model of unit value determination in a way which is consistent with demand theory, unlike methods hitherto prominent in the literature. The method is applied to Czech data.
Authors
Ian Crawford
Research Fellow University College London
Ian is a Research Fellow of the IFS and a Professor of Economics at UCL. He joined UCL in 1991 and has been attached to the IFS since 1990.
International Research Fellow ZEW, Mannheim
Francois is a Professor at ZEW Manheim and is also an International Fellow of IFS. His research interests include labour markets and social policy.
Working Paper details
- DOI
- 10.1920/wp.ifs.2002.0217
- Publisher
- IFS
Suggested citation
I, Crawford and F, Laisney and I, Preston. (2002). Estimation of household demand systems with theoretically compatible Engel curves and unit value specifications. London: IFS. Available at: https://ifs.org.uk/publications/estimation-household-demand-systems-theoretically-compatible-engel-curves-and-unit (accessed: 20 May 2024).
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