Short-cut Demand Elasticities and Other Convenient Approaches to Consumer Demand

This book provides answers to analysts’ need to know about elasticities of demand, with a unique two-track approach. The first gives a self-contained, non-technical rendition, accessible to those with limited background. The second track contains the underlying theory, derivations, and some more advanced material. Subsequent chapters deal with the demand for food and other groups of goods, the system-wide approach, and the demand side of EDM and CGE models. This convenient source book will be valuable to students, consultants, business economists and government policy analysts. Clarity of exposition and economic intuition is emphasised throughout. “In this remarkable book, the authors bridge the gap between sophisticated consumer demand theory and the practical world of economic modeling. Their guidance will be invaluable to anyone aiming to shed light on the economic impact of public policies.” Thomas W. Hertel, Distinguished Professor and Executive Director, Center for Global Trade Analysis, Purdue University “The elasticity of demand is a key parameter in economics - whether for micro studies or large-scale models. This book illuminates on short-cut approaches for measuring this elasticity and provides derivations and applications. It is a valuable resource for both students and seasoned economists.” Paul Burke, Professor and Head, Arndt-Corden Department of Economics and Deputy Director, Crawford School of Public Policy, ANU College of Law, Governance and Policy, Australian National University “This book endears itself to me with its honest approach to determining elasticities for use in policy analysis. In Chapter 1, it tells us about the rule of one half: if you can’t do any better, set own price elasticities for household demands for broadly defined commodities at -0.5. Then through ten chapters, Ken Clements and his co-authors demonstrate that you can do better by combining economic theory with relatively straightforward econometrics. The book deserves wide readership among applied economic modellers who want to take their field forward by supplementing judgement with statistical evidence.” Peter Dixon, AO, Professor, Centre of Policy Studies, Victoria University