A common assumption implicit in the literature on aggregation error in consumer demand theory is that micro relations are exact. Attention is thus focused solely on the errors introduced when one assumes that a micro relation holds at the macro level. We consider the Almost Ideal Demand System...

The paper explores the allocation of consumption expenditure by the older population among different categories of goods and services, and how expenditure patterns change with age within that population. Of particular interest is whether observed differences between pre- retirement and...

Errors introduced by using aggregate data in estimating a consumer demand model have long been a concern. We study the effects of such errors on elasticity estimates derived from AIDS and QUAIDS models. Based on a survey of published articles, a generic parameterization of the income...

A model of the demand for electricity and natural gas in commercial buildings is specified and estimated using data from the Commercial Building Energy Consumption Survey. Although not observed, declining rate schedules are allowed for by an adaptation of a method proposed by Halvorsen (1975)....

This study uses survey data relating to the United States commercial sector to estimate and interpret annual energy demand relationships in which account is taken of energy and non-energy prices, building characteristics, and weather information. It applies the estimated US relationships to the...

Elasticity values calculated at the macro level are biased as estimates of micro elasticities, and vice versa. We derive convenient expressions for aggregation/disaggregation biases in an Almost Ideal Demand System. Using after-tax data we calculate income distribution parameters for seven...

While it is well known that demand elasticities calculated at the macro level will in general differ from those calculated at the micro level because of aggregation effects there remain the questions of how large the effects are, and how they vary with the degree of nonuniformity in the income...

It has long been recognized that taxing a commodity that generates negative externalities can be used to reduce the consumption of that commodity. A variant involves the imposition of revenue neutrality but that may alter the tax rate required to meet a consumption reduction target. We explore...

Consumer-related policy decisions often require analysis of aggregate responses or mean elasticities. However, in practice these mean elasticities are seldom used. Mean elasticities can be approximated using aggregate data, but that introduces aggregation bias for full and compensated price...

Traditionally, the literature has not found economies of scale for the very large banks. Among the reasons for these results are that usually large banks are not the sole focus of analysis and the analyzed banks may be subject to a diverse set of regulatory restrictions and limitations with...