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Type: Journal Articles Authors: Ian Crawford, François Laisney and Ian Preston
Published in: Journal of Econometrics
Volume, issue, pages: Vol. 114, No. 2, pp. 221-241
JEL classification: D11, D12 Keywords: Consumer demand; Unit values
We develop a method for estimation of price reactions using unit value data which exploits the implicit links between quantity and unit value choices. This allows us to combine appealing Engel curve specifications with a model of unit value determination in a way which is consistent with demand theory, unlike methods hitherto prominent in the literature. The method is applied to Czech data.
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