cross price elasticities. These models can however not be used to examine which brands lose share to which brands during a …-sample fit and out-of-sample forecasting. We also demonstrate how our model can be used to decompose own and cross price …

. Theoretically it is clear that a distinction should be made between Morishima substitution elasticities and cross-price elasticities … elasticities are substantially higher than cross price elasticities. Therefore, despite considerable technical opportunities for … capital-energy substitution, they are almost entirely outweighed by the negative income effect brought about by energy price …