Consumption Of Other Commodities Research Articles

Commodity interaction in freight movement models for New South Wales

The continuous growth in urban population has led to intense competition for space among the various actors in the urban system. Planning and managing this competition requires a better understanding of both personal travel and goods movements. Urban planning in the past has however, focused on providing a sustainable and efficient transport system to solve personal mobility challenges with almost total neglect of the goods movement sector. However, with the growing importance of freight to both local and national economies, and also the disproportionate impacts of freight related activities on congestion, pollution, accidents and other road hazards, there is a stronger call for a better understanding of the freight system. Central to freight movement models is an understanding of where the freight commodities are produced and consumed. An important driver in the production and/or consumption of each commodity is the production and consumption of other commodities. In this paper, these important interactions between commodities are captured in a path analysis freight model which incorporates models of commodity production and consumption. We identify the key factors driving the consumption and production of each commodity. To be suitable for forecasting and policy testing, the estimated models are transformed into linked logit models to also allow for important policy measures such as accessibility and commodity generation influences such as population and employment to be estimated. The proposed model has been implemented to generate the amount of commodity of each type produced and consumed in each state of Australia with illustrations of how the production and/or consumption of one commodity triggers the production and/or consumption of other commodities. The study also demonstrates the differential impacts of changes in demographics or employment growth on the consumption and/production of different commodities. When built into an integrated transport and land use model system that accommodates both passenger and freight activity, and includes models that account for spatial dependency (which is not a requirement of the macro level commodity generation stage), this freight generation capability contribute to the way in which freight movements influence and hence impact on the performance of the entire transport network, for both passenger and freight.

The crowding out effect of out-of-pocket medication expenses of two major non-communicable diseases in Pakistan.

Elevated blood pressure (i.e. hypertension) and diabetes (BPD) are the two major noncommunicable diseases that expose households to high out-of-pocket treatment costs in low- and middle-income countries. Medication is the biggest share of BPD treatment expenses, and households with someone suffering from BPD may need to adjust consumption of other commodities to pay for essential BPD medicines. We assess how BPD medication expenditures are associated with crowding out of other household commodities in Pakistan. We analyze self-reported household consumption data from the nationally representative Pakistan Household Income and Expenditure Survey 2015-16. We estimate conditional Engel curves under the Quadratic Almost Ideal Demand System framework to examine the differences in average consumption shares between BPD medication-consuming and not-consuming households. We find that BPD medication expenditures are associated with crowding out of food and crowding in of other medical expenditures for all households, but the magnitudes of crowding out and crowding in are larger for the poorer households. BPD medication spending is also associated with crowding out of education and personal care for middle-class and wealthier households. Our results indicate that allocations for essential commodities, like food and education, are lower for BPD medication-consuming households and inform policies for preventive health promotions and affordable treatment for hypertension and diabetes.

Tobacco expenditure and its implications for household resource allocation in Cambodia

ObjectivesTo assess the determinants of smoking behaviour and to estimate the impact of tobacco consumption on the consumption of other commodities by Cambodian households.MethodsTo assess the determinants of smoking in...

Drug Demand – Initiation, Continuation and Quitting

As illicit drug use inflicts considerable harm on users, non-using persons and society, there is an urgent need to better understand demand. Unlawfulness and addictiveness separate the consumption of narcotic drugs from the consumption of other commodities. This paper reviews economic approaches to the task of analysing drug consumption and discusses some recent contributions to the field. We find it useful to apply a threefold division to a user’s career: the initiation phase, the continuation phase and the quitting phase. First, however, we present an analysis of drug injectors’ heroin demand based on a large set of personal interviews (n = 2882) and illustrate some of the problems affecting empirical studies in this field. An estimated price elasticity of −0.77 and income elasticity of 0.56 suggest a high level of responsiveness to economic incentives among heavy drug users.

Bonus of rebate?: the impact of income framing on spending and saving

All income increases a person’s absolute wealth, but consumption decisions may be based more heavily on perceived changes in wealth. Change is computed by comparing a current statewith a former state, and we predicted that peoplewould be more likely to spend income framed as a gain from a current wealth state than income framed as a return to a prior state. Four experiments confirmed this prediction on people’s memory for spending of a government tax rebate (Experiment 1), on unobtrusive self-report measures of spending an unexpected windfall (Experiments 2 and 3), and on actual spending on items for sale in a laboratory experiment (Experiment 4). These results can be explained, at least in part, by the reference points implied in the framing of income (follow-ups to Experiments 1 and 4). Discussion focuses on implications for the consumption of other commodities, assessments of risk, and government tax policies. Copyright # 2006 John Wiley & Sons, Ltd.

A Modern Analysis of Giffen's Paradox

Concern over the possibility of an upward sloping demand curve started with Marshall, who credited Robert Giffen, an English statistician, with having first observed that more of a commodity may be consumed when its rises.' Nearly 100 years after Marshall published his remarks, the received analysis of a Giffen good is almost entirely contained in the assertion that in the Slutsky equation for the own price effects on consumption of the good, the income term may be sufficiently large to outweigh the negative pure substitution term. Even the elementary question of the impact of this large income effect on the consumption of other commodities seems to have been overlooked.2 In the standard two-good (x1 and x2) world, for example, if x1 is a Giffen good, i.e., if Ox1/lp, > 0, then from the budget constraint, p1OX1/P1 +p2aX2/p1= x1 and thus ax2/ap1 O. To satisfy the budget constraint, the large negative income term for x1 must produce a large positive income effect for x2 that outweighs the net substitution term in the Slutsky equation for the effects of changes in Pi on x2. When the of the Giffen good changes, therefore, not only does the income term outweigh the substitution term for the Giffen good, but a similar result is produced for the cross effect on the other commodity. This simple result seems to have gone unnoticed. Many economists have studied the Giffen paradox but a satisfactory analysis appears to be lacking. Marshall believed that the marginal utility of money, i, must rise with an increase in the of the Giffen good. George Stigler asserted [1950, p. 327], that the Giffen case is inconsistent with an additively separable utility function.3 William Gramm [1970] also examined the paradox, but his interpretation was not intended to add to knowledge about the economics of the