This paper deals with a problem of censored data in the household demand analysis when budget survey data is used. Micro-data, in contrast with aggregated data, usually contains a significant portion of zero observations (no consumption recorded) that leads to censoring of data and potential...

We provide the first estimate of the elasticity of marginal utility of consumption, η, for a post-transition economy in the Central & Eastern European region, the Czech Republic, based on individual-level data. The parameter η is a crucial component of the social discount rate (SDR), which...