New answers tagged elasticity
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Optimised Pricing with Static Price Data
No, to estimate elasticity you need at least some variation in prices. When you estimate the coefficient for elasticity using any parametric model, the estimate will depend on variance of prices, for ...
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Truth behind Samuelson's statement against elasticities
Was it a joke?
It could be joke, or it could be serious statement. Elasticities, especially their empirical estimation, became quite important in the field nowadays. Google Scholar shows over 24000 ...
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Price Elasticity with real monthly data
No, it is not possible. The reason for that is that to calculate price elasticity of demand you first have to estimate parameters of demand function. You might think that you have data on demand, but ...
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Trans-log production function or trans-log cost function
There is no one right answer. Consider using several types of production functions, for robustness. The most popular tend to be Cobb-Douglas and Translog functions.
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How to determine elasticity of demand when equation has more than one variable
There is no such thing as "the" elasticity of demand. Elasticities are always specified with respect to some variable the demand depends on. In your example there is an own-price elasticity, ...
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How to determine elasticity of demand when equation has more than one variable
Even though it could seem a more complicate way, actually using multivariate calculus is the simplest way, as simple as univariate calculus.
In fact, a partial derivative is calculated in the same way ...
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How to determine elasticity of demand when equation has more than one variable
Own price elasticity of demand is just the elasticity of the demand w.r.t. the own price, here PB. The other variables are treated as constant parameters, ceteris paribus.
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