Effects Of Price Changes Research Articles

The asymmetric effects of changes in price and income on renewable and nonrenewable energy

Due to the ongoing climate change and environmental pollution, renewable energy supply has been overemphasized in many countries. Since an increase in the prices of non-renewable energy sources or the country's income might shift energy demand from non-renewable energy sources to renewable energy sources, this study examines the relationship of renewable and non-renewable energy consumptions with income and price. Whether price and income have an asymmetric effect on energy consumption was tested in the models constructed for 42 net energy exporter countries from 2000 to 2018. The asymmetry test indicates that only price has an asymmetric effect on solar, wind, and geothermal energy consumption among renewable energy sources, whereas both price and income have an asymmetric effect on oil consumption among non-renewable energy sources. According to the results of using specific heteroscedasticity and individual-specific first order autocorrelation to estimate the symmetric and asymmetric panel regression model, the income elasticity in the wind and solar energy models was more than one. Moreover, although the consumption of all energy sources is sensitive to the price of crude oil, positive shocks in prices are more effective on consumption than negative shocks in prices.

The impact of taxation and signposting on diet: an online field study with breakfast cereals and soft drinks

We present a large scale study where a nationally representative sample of 1000 participants were asked to make real purchases within an online supermarket platform. The study captured the effect of price changes, and of the signposting of such changes, for breakfast cereals and soft drinks. We find that such taxes are an effective means of altering food purchasing, with a 20% rate being sufficient to make a significant impact if (and only if) the tax is signposted. Signposting represents a complementary “nudge” policy that could enhance the impact of the tax, though its effectiveness depends on the product category.

Nash Equilibria on (Un)Stable Networks

In response to a change, individuals may choose to follow the responses of their friends or, alternatively, to change their friends. To model these decisions, consider a game where players choose their behaviors and friendships. In equilibrium, players internalize the need for consensus in forming friendships and choose their optimal strategies on subsets of k players—a form of bounded rationality. The k‐player consensual dynamic delivers a probabilistic ranking of a game's equilibria, and via a varying k, facilitates estimation of such games. Applying the model to adolescents' smoking suggests that: (a) the response of the friendship network to changes in tobacco price amplifies the intended effect of price changes on smoking, (b) racial desegregation of high schools decreases the overall smoking prevalence, (c) peer effect complementarities are substantially stronger between smokers compared to between nonsmokers.

The Effect of Price Changes on the Demand for E-books and Printed Books

The Effect of Price Changes on the Demand for E-books and Printed Books

Analytical Model of Exhibition Price Change Effects on Second-Hand Fashion Electronic Commerce Sites

Analytical Model of Exhibition Price Change Effects on Second-Hand Fashion Electronic Commerce Sites

Price and income elasticities for alcohol in Sri Lanka

Aims: To study the effect of changes in income as well as prices of beer and arrack, on alcohol sales in Sri Lanka during the period 1981–2017.
 Design: The analyses were conducted by means of ARIMA time series analysis for arrack and beer separately.
 Measures: Yearly data on the sales of beer and arrack in the entire country were used. National GDP figures were used as a proxy measure of income, and yearly price data for arrack and beer were from Colombo, the largest metropolitan area in the country.
 Results: No short-term effects of changes in price or income were found on sales. However, changes in the price of beer were significant, with a lag structure, which implies a delayed effect of price changes on the sales of beer. A significant cross-price effect of changes in the price of beer on arrack sales was found as well.
 Conclusions: Sales of alcohol in Sri Lanka are not affected by price changes to the same extent as in high income countries. Most likely, the explanations will be found in the different drinking cultures between Sri Lanka and these countries.

Econometric Analysis of the Effect of Changes in Price on Consumption Pattern of Petrol, Rice and Bean in Owerri City, Imo State, Nigeria

It was hypothesized that changes in price could affect the consumption pattern of petrol, rice and bean, their status as basic needs notwithstanding. To test this hypothesis, primary data were generated, subjected to econometric model and analyzed. Two-hundred residents of different income groups who live in Owerri city, Imo State, Nigeria and have used petrol, rice and bean for at least ten years and were not less thanthirty-one years old were sampled using standard method. The pretest result of questionnaire validity and reliability was r = 0.726 and this indicates high reliability. A total of 90% strongly agreed and agreed that prices of petrol, rice and bean are unstable in Owerri City, Imo State, Nigeria. The results indicate that 70% of the consumers strongly agreed and agreed that price affects consumption of the products irrespective of need. This wasa significant observation too. In the study, availability of petrol, rice and bean affected consumption in an urban environment.Grain quality was found a strong determinant of consumption of rice and bean in the city. There was a positive and non-significant relationship between price and consumption of petrol, rice and bean and this shows that price is not the most important determinant of consumption of all commodities. Necessity was more important than price in consumption of petrol, rice and bean in the city of Owerri, Imo State, Nigeria. These findings are useful to econometricians, policymakers, governments and households.
 Keywords: Basic needs, Econometric model, Income groups, High reliability, Grain quality.

The effects of price and non-price policies on cigarette consumption in South Africa.

INTRODUCTIONThe health consequences of smoking are serious and have been frequently detailed. A reduction in tobacco-related mortality hinges upon the ability to reduce tobacco usage. There is overwhelming evidence that higher cigarette prices reduce the demand for cigarettes, but little is known about the combined effect of price and non-price policies. This paper seeks to extend the analysis of price elasticities by estimating the combined effect of changes in price and non-price legislations in South Africa.METHODSAnnual time-series data from 1961 to 2016 are used, with a policy index constructed to capture the instances of non-price tobacco legislation. We estimate the combined impact of changes in tobacco control policy on cigarette consumption using a vector error correction model (VECM) and a two-stage least squares (2SLS) model.RESULTSThe estimated long-run own-price elasticities lie between -0.55 and -0.72, while the income elasticities lie between 0.39 and 0.49. The coefficients of the changing tobacco control policies and the changing market structure show that they contribute to a modest reduction in cigarette consumption. The short-run deviations from the steady state are presented using the error correction term (ECT).CONCLUSIONSCigarette demand is responsive to cigarette prices and non-pricing policies but failure to control for non-pricing policies overstates the price effect. This suggests that both cigarette prices and non-pricing legislation are effective in reducing cigarette consumption.

The effect of food taxes and subsidies on population health and health costs: a modelling study

One possible policy response to the burden of diet-related disease is food taxes and subsidies, but the net health gains of these approaches are uncertain because of substitution effects between foods. We estimated the health and cost impacts of various food taxes and subsidies in one high-income country, New Zealand. In this modelling study, we compared the effects in New Zealand of a 20% fruit and vegetable subsidy, of saturated fat, sugar and salt taxes (each set at a level that increased the total food price by the same magnitude of decrease from the fruit and vegetable subsidy), and of an 8% so-called junk food tax (on non-essential, energy-dense food). We modelled the effect of price changes on food purchases, the consequent changes in fruit and vegetable and sugar-sweetened beverage purchasing, nutrient risk factors, and body-mass index, and how these changes affect health status and health expenditure. The pre-intervention intake for 340 food groups was taken from the New Zealand National Nutrition Survey and the post-intervention intake was estimated using price and expenditure elasticities. The resultant changes in dietary risk factors were then propagated through a proportional multistate lifetable (with 17 diet-related diseases) to estimate the changes in health-adjusted life years (HALYs) and health system expenditure over the 2011 New Zealand population's remaining lifespan. Health gains (expressed in HALYs per 1000 people) ranged from 127 (95% uncertainty interval 96-167; undiscounted) for the 8% junk food tax and 212 (102-297) for the fruit and vegetable subsidy, up to 361 (275-474) for the saturated fat tax, 375 (272-508) for the salt tax, and 581 (429-792) for the sugar tax. Health expenditure savings across the remaining lifespan per capita (at a 3% discount rate) ranged from US$492 (334-694) for the junk food tax to $2164 (1472-3122) for the sugar tax. The large magnitude of the health gains and cost savings of these modelled taxes and subsidies suggests that their use warrants serious policy consideration. Health Research Council of New Zealand.

A Systematic Review of the Association Between Hospital Cost/price and the Quality of Care.

BackgroundLimited empirical evidence exists regarding the effect of price changes on hospital behavior and, ultimately, the quality of care. Additionally, an overview of the results of prior literature is lacking.ObjectiveThis study aims to provide a synthesis of existing research concerning the relationship between hospital cost/price and the quality of care.MethodsSearches for literature related to the effect of hospital cost and price on the quality of care, including studies published between 1990 and March 2019, were carried out using four electronic databases. In total, 47 studies were identified, and the data were extracted and summarized in different tables to identify the patterns of the relationships between hospital costs/prices and the quality of care.ResultsThe study findings are highly heterogenous. The proportion of studies detecting a significant positive association between price/cost and the quality of care is higher when (a) price/reimbursement is used (instead of cost); (b) process measures are used (instead of outcome measures); (c) the focus is on acute myocardial infarction, congestive heart failure, and stroke patients (instead of patients with other clinical conditions or all patients); and (d) the methodological approach used to address confounding is more sophisticated.ConclusionOur results suggest that there is no general relationship between cost/price and the quality of care. However, the relationship seems to depend on the condition and specific resource utilization. Policy makers should be prudent with the measures used to reduce hospital costs to avoid endangering the quality of care, especially in resource-sensitive settings.Electronic supplementary materialThe online version of this article (10.1007/s40258-020-00577-6) contains supplementary material, which is available to authorized users.

Efecto de los cambios en el precio de los alimentos sobre el consumo de la quinua y la seguridad alimentaria rural en el Perú

The objective of this study was to determine the effect of changes in prices on food consumption of rural producers in Junin (Peru) in order to verify if there are some differences in food security between farmers who produce quinoa and those who do not. For this purpose, surveys were applied to 277 producers and the data from the National Household Survey (2016) were used to assess the dimensions of food security. It was found that local food has lower elasticity values than foreign one, but the variability of local food prices is higher. In addition, 27.3% of the population does not satisfy the caloric requirements, and that the quinoa consumption is associated with its nutritional value and cultural factors. In Junin’s rural population a low nutritional value consumption is evident, and there are not significant differences in the daily food consumption between producers who farm the quinoa and those who do not. Therefore, food price increases would equally impact both producer groups.

Disequilibrium Trade in a Large Market for an Indivisible Good

AbstractDisequilibrium trade can occur in a market lacking both recontracting and a computational system that maps utilities into prices. This paper studies disequilibrium trade in a large market for an indivisible good. We focus on the possible speed of adjustment when arbitrage among periods is feasible and the surplus loss. We find that incentive compatible sequential trade through a disequilibrium path is only compatible with sluggish price adjustments and sufficiently impatient agents. Thus, price adjustment does not depend on excess demand alone but on arbitrage opportunities and the willingness of agents to engage on them. We find that the upper bound on the speed of price adjustment involves a lower bound for the social surplus loss, whatever the kind of rationing. The reason is that even when the market price converges to the surplus maximizing value, as it happens when rationing is efficient, some pieces of surplus are not attainable at the current period due to arbitrage. Moreover, faster price adjustments do not imply less surplus loss, because the effect of price changes on transactions via arbitrage. Finally, under weaker-than-efficient rationing there is a one period incentive compatible trading procedure in which most of the surplus is destroyed. The procedure has the property that almost every agent in the market trades.

The Effective Spirits’ Taxation Policy across Regions in Montenegro

This study aims to test the impact of taxation policy on households’ spirits consumption on a regional level. To asses regional differences in spirits use and prevalence changes, due to price and income increase, we applied Two-part methodology on Household Budget Survey data. Using estimates of prevalence and conditional elasticity, we were capable of simulating the effects of price changes on consumption and public revenues. The results confirmed the positive impact of effective taxation policy – consumption decreases, and public revenues increase with evident regional differences. The paper contributes to the research of the consumption sensitivity to price and income changes, which was, until now, not empirically tested in Montenegro.

The demand for beef in Indonesian urban

The low consumption of animal protein food is one of the causes of the increasing number of stunting in Indonesia. This study analyzes the effect of changes in prices and incomes on demand for five animal food groups, namely fish, chicken, beef, eggs, and milk. The demand function approach uses the Almost Ideal Demand System model with the parameter estimates using Seemingly Unrelated Regression. The research data using 124,513 households from Indonesian National Socio-economics Survey in 2016. The results showed that beef was the most elastic animal food among all animal foods with a demand elasticity of 1,031%, followed by chicken meat (0.564%), milk (0.451%), eggs (0.313%), and sea fish (0.151%). Beef is a luxury item. Beef is substituted with sea fish, eggs, or chicken meat. Beef is complementary to milk. The increase in beef prices is one of the policies that need to be considered so that the target of protein consumption is immediately reached.

A Model for Dual Healthcare Market with Congestion Differentiation

The French market for specialist physician care has a dual legal structure: physicians must exclusively work in sector 1 and charge regulated fees or in sector 2, where they can freely set their fees. Patient out-of-pocket payments in sector 2 are partially covered by private insurance. The primary differentiating factor between both sectors is the number of patients per specialist, which in turn directly affects the overall quality of the service provided. We built an equilibrium model to analyse both specialists decisions about which sector to work in, and patients choice of physician and therefore sector. More specifically, the model allowed us to study the effect of changes in prices and economy-wide patient-to-specialist ratios on profits and patients utility associated with the services provided in each sector.

Do We Exploit All Information for Counterfactual Analysis? Benefits of Factor Models and Idiosyncratic Correction

Optimal pricing, i.e., determining the price level that maximizes profit or revenue of a given product, is a vital task for the retail industry. To select such a quantity, one needs first to estimate the price elasticity from the product demand. Regression methods usually fail to recover such elasticities due to confounding effects and price endogeneity. Therefore, randomized experiments are typically required. However, elasticities can be highly heterogeneous depending on the location of stores, for example. As the randomization frequently occurs at the municipal level, standard difference-in-differences methods may also fail. Possible solutions are based on methodologies to measure the effects of treatments on a single (or just a few) treated unit(s) based on counterfactuals constructed from artificial controls. For example, for each city in the treatment group, a counterfactual may be constructed from the untreated locations. In this paper, we apply a novel high-dimensional statistical method to measure the effects of price changes on daily sales from a major retailer in Brazil. The proposed methodology combines principal components (factors) and sparse regressions, resulting in a method called Factor-Adjusted Regularized Method for Treatment evaluation (\texttt{FarmTreat}). The data consist of daily sales and prices of five different products over more than 400 municipalities. The products considered belong to the \emph{sweet and candies} category and experiments have been conducted over the years of 2016 and 2017. Our results confirm the hypothesis of a high degree of heterogeneity yielding very different pricing strategies over distinct municipalities.

Food price changes and farm households’ welfare in Nigeria: direct and indirect approach

ABSTRACT This paper analyzed the welfare effects of price changes over categories of farm households in Nigeria taking into consideration the dual role of farm households as both consumer and producer of food between 2010–2016. This study attempts to shed some light on the differences between the direct approach and indirect. Estimated Compensating Variation reveals that 79.0% of farm households were net food buyers and suffered welfare loss (mean = 2.98) with the mean expenditure of N529, 397.5 per annum while 21.0% were net food sellers and enjoyed welfare gain (mean = −1.66) with the mean expenditure of N513, 755.7 per annum. Cereal was identified as food for which the households were most vulnerable to price shocks. When adjustments are allowed, households can adapt their consumption and production patterns resulting in lower deteriorations in welfare with significant differences across quintiles. Therefore, efforts to mitigate extreme price spikes are relevant for improved overall household welfare.

Trading on Food Quality due to Changes in Prices: Are There Any Nutritional Effects?

The analysis of changes in prices is not only important because they directly affect households’ affordability and, therefore, their food security but also because they may trigger changes in the composition of their food and drink choices. Thus, an increase in prices may force a household with limited resources to choose a bundle of goods with lower prices that substitute their original choices and are probably of lower quality. This paper considers the situation of each UK country and the implications that trading down in quality within a food and drink category has on nutrition. Two motivations to pursue these analyses are to explore the sort of substitutions that households do within a category due to an increase in prices and, in the UK leaving the European Union (Brexit) context, the impact that an increase in food prices may have on nutrition. After computing estimates for trading down for each country for the period 2007–2014, we regress the annual rate of change by nutrient with respect to the annual trading in quality for six food qualities that are major contributors of fat, sugar and salt to the diet. The results indicate that trading down in quality occurs in most of the studied categories and countries, and when households trade down, they move to products with worse nutritional quality. This points out the need to keep improving the quality of products through reformulation, ensure that consumers are well informed of nutritional quality of products and monitor the effect of changes in prices.

KAJIAN SISTEM PERMINTAAN KOMODITAS SUMBER PROTEIN DI ENAM PROVINSI INDONESIA

The government's commitment to realize national food security through overcome food insecurity and malnutrition as the main program of the Ministry of Agriculture. This study aims to analyze differences in consumption of protein commodities based on two provincial categories and the effect of changes in prices and income on demand of protein commodities. The two provincial catagories are provinces which has protein consumption below Adequacy Rate of Protein (AKP), namely Jambi, Nusa Tenggara Timur, Maluku and provinces which has protein consumption above AKP, namely Jakarta, Jawa Barat, Jawa Timur. This study used the National Socio-Economic Survey (SUSENAS) in March analyzed by using Linear Approximate-Almost Ideal Demand System (LA/AIDS). The results showed that consumption of fish and meat in provinces above AKP is higher then percapita consumption in provinces below AKP, while the others percapita consumption like poultry, egg, tempeh, and tofu is higher in provinces above AKP. Price and expenditure elasticity is more elastic in provinces above AKP then price and expenditure elasticity in provinces below AKP. Generally, the commodity's own price elasticity is inelastic in both categories of provinces except eggs. The value of egg elasticity is greater than 1 (elastic), either in provinces above AKP or in the provinces below AKP. Based on expenditure elasticity, all commodities are normal goods. Fish, poultry, and eggs are luxury goods in the province above the AKP, while only fish and eggs are luxury goods in the provinces below the AKP.

Identification of Cause-and-Effect Relationships in the Real Estate Market Using the VAR Model and the Granger Test

Abstract The real estate market, as an open, complex and dynamic system, responds to changes in the environment of economic, legal or social conditions, although the pace and direction of these changes depends on the level of inertia of this system. At the same time, this market stimulates the market environment through prices. This study attempts to identify cause-and-effect relationships in the scope of the impact of selected economic and social indicators on prices of residential premises, as well as to identify the effects of price changes on these indicators. The time horizon of the study covered the years from 2008 to 2018. In the studies, to assess the stationarity of time series, an extended Dickey-Fuller test was used for the model with a free expression and linear trend, a vector autoregression model (VAR) was then constructed and Granger tests and impulse response analysis were performed using the Impulse Response Function (IRF). As a result, it was demonstrated that the response of real estate prices to the impulse from explanatory variables appears between the first and the fourth quarters, and expires after about three years.