Estimating demand elasticities under rationing
Eliminating rationing in the United Kingdom following the Second World War was a concern for policy-makers because of potentially large fluctuations in post-war prices and the impact on unrationed goods. This study shows that in using virtual prices, elasticities can be estimated from a 'free' demand system consistent with observed consumer choices. Substitution estimates without accounting for rationing are misleading. In contrast, using virtual prices and estimating a 'free' market system yield results similar to those of the pre-war period. Results show that food rationing affected expenditure across unrationed goods. Rationing on other services had little effect on expenditure across unrationed goods.
Year of publication: |
2014
|
---|---|
Authors: | Fleissig, Adrian R. ; Whitney, Gerald A. |
Published in: |
Applied Economics. - Taylor & Francis Journals, ISSN 0003-6846. - Vol. 46.2014, 4, p. 432-440
|
Publisher: |
Taylor & Francis Journals |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
A nonparametric test of weak separability and consumer preferences
Fleissig, Adrian R., (2008)
-
Fleissig, Adrian R., (2009)
-
Quantity constraints and violations of revealed preference
Fleissig, Adrian R., (2007)
- More ...