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Household Energy Demand and the Equity and Efficiency Aspects of Subsidy Reform in Indonesia AgEcon
Olivia, Susan; Gibson, John.
The proper design of price interventions requires consideration of equity and efficiency effects. In this paper, budget survey data from 29,000 Indonesian households are used to estimate a demand system for five energy sources, which is identified by the spatial variation in unit values (expenditures divided by quantities). We correct for the various quality and measurement error biases that result when unit values are used as proxies for market prices. The price elasticities are combined with tax and subsidy rates to calculate the marginal social cost of price changes for each item. The results suggest that even at high levels of inequality aversion there is a strong case for reducing the large subsidies on gasoline and kerosene, supporting the reforms...
Tipo: Conference Paper or Presentation Palavras-chave: Demand elasticities; Energy; Fuels; Subsidies; Unit Values; Resource /Energy Economics and Policy; D12; Q31.
Ano: 2006 URL: http://purl.umn.edu/25745
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A Penny Saved: Prices and the Timing of Paycheck Receipt AgEcon
Beatty, Timothy K.M..
This paper explores a puzzling empirical regularity: households pay less for foods as the time since receipt of their last paycheck increases. I leverage randomization with regard to paycheck timing to causally identify the effect of time since paycheck receipt on prices. Estimates of the decline in prices range between 5% and 6% percent, over the course of a month. I investigate several potential explanations for this behavior, including credit constraints and stockpiling. I find evidence that the effect is driven by low-income households and exacerbated by stockpiling behavior.
Tipo: Conference Paper or Presentation Palavras-chave: Unit Values; Paycheck Timing; Permanent Income Hypothesis; Consumer/Household Economics; D91; E21.
Ano: 2010 URL: http://purl.umn.edu/61008
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