When does specification or aggregation across consumers matter for economic impact analysis models? An investigation into demand systems

Title: When does specification or aggregation across consumers matter for economic impact analysis models? An investigation into demand systems
Authors: Boysen, Ole
Permanent link: http://hdl.handle.net/10197/12537
Date: 15-Jan-2019
Online since: 2021-10-11T14:25:43Z
Abstract: Economic impact analysis simulation models frequently rely on some kind of representation of consumption behavior. However, the sensitivity of such results with respect to the choices of the specification and the level of aggregation across consumers has not yet been thoroughly examined. We exploit a unique dataset to simulate various stereotypical scenarios and investigate the influence of the choice between six demand system specifications and household-level versus national-level models on several outcome measures. We find that both choices have a large influence on simulation results and thus on policies deduced therefrom. Our results point to pragmatic recommendations for various settings.
Type of material: Journal Article
Publisher: Springer
Journal: Empirical Economics
Volume: 56
Issue: 1
Start page: 137
End page: 172
Copyright (published version): 2017 Springer
Keywords: Demand systemsAggregationSpecificationCalibrationEconomic impact analysis modelsTax-refromRankEquations
DOI: 10.1007/s00181-017-1353-z
Language: en
Status of Item: Peer reviewed
ISSN: 0377-7332
This item is made available under a Creative Commons License: https://creativecommons.org/licenses/by-nc-nd/3.0/ie/
Appears in Collections:Agriculture and Food Science Research Collection

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