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Standard discrete choice models such as logit, nested logit, and random coefficients models place very strong restrictions on how unobservable product space increases with the number of products. We argue (and show with Monte Carlo experiments) that these restrictions can lead to biased...
Persistent link: https://www.econbiz.de/10012469917
I discuss economic approaches to the demand for harmfully addictive substances and estimate time-series demand …
Persistent link: https://www.econbiz.de/10012467739
This paper provides an empirical estimate of price' and risk' elasticities of demand for term life insurance for those …
Persistent link: https://www.econbiz.de/10012468772
estimates of the price elasticity of demand for health care, and suggest that high deductible health plans may be less effective …
Persistent link: https://www.econbiz.de/10012455878
Many new products presumed to be privately beneficial to the poor have a high price elasticity of demand and ultimately … model that includes the forces that are known to be determinants of insurance demand, provide reduced form confirmation of …
Persistent link: https://www.econbiz.de/10012455978
Estimating consumer surplus is challenging because it requires identification of the entire demand curve. We rely on … Uber's "surge" pricing algorithm and the richness of its individual level data to first estimate demand elasticities at … several points along the demand curve. We then use these elasticity estimates to estimate consumer surplus. Using almost 50 …
Persistent link: https://www.econbiz.de/10012456053
Daily city-level expenditures and prices are used to estimate the price responsiveness of gasoline demand in the U ….S. Using a frequency of purchase model that explicitly acknowledges the distinction between gasoline demand and gasoline … expenditures, we consistently find the price elasticity of demand to be an order of magnitude larger than estimates from recent …
Persistent link: https://www.econbiz.de/10012456331
pharmaceuticals, are deemed to be price inelastic with price elasticities of demand (PED) close to -0.20. However, most studies of PED … exploit natural experiments that change demand prices for multiple components of health care. Consequently, these experiments … usually do not produce estimates for the true own-price elasticities of demand but rather composite own-price elasticities …
Persistent link: https://www.econbiz.de/10012456367
price elasticities of demand using four alternative cigarette tax/price measures that compensate for the local tax … States. We estimate a price elasticity of total demand of -0.38 using the price measure most strongly compensating for the …
Persistent link: https://www.econbiz.de/10012456379
policy from commercial property coverage. In this paper, we determine whether companies differ in their demand for property … to obtain consistent estimates of premium elasticity of corporate demand for property and terrorism coverage. Our … findings suggest that both are rather price inelastic and that corporate demand for terrorism insurance is significantly more …
Persistent link: https://www.econbiz.de/10012459129