| This study presents a procedure to estimate expenditure and price elasticities of food commodities from cross-sectional data. There are two problems with the use of cross-sectional data: First, priceinformation is not sufficient in these data. To derive “adjusted prices” from cross-sectional data an approach of COX and WOHLGENANT is applied. Second, zero expenditures for some commodity groups can be observed. To avoid selectivity bias a generalization of the HECKMAN procedure is employed. Both, the adjusted prices and the bias correction are included in a Linear Expenditure System. It can be concluded that expenditure and price elasticities could differ significantly between household characteristics. The research results suggest that attempts to use only... |
