Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/240467 
Year of Publication: 
2020
Series/Report no.: 
IFN Working Paper No. 1324
Publisher: 
Research Institute of Industrial Economics (IFN), Stockholm
Abstract: 
This paper proposes a simple non-parametric framework to calculate income elasticities from a data set of observed prices and consumed quantities without having to estimate any parameters. The framework can be applied when the price-quantity data satisfies a revealed preference axiom called the strong version of the strong axiom of revealed preference (SSARP). The framework is used to calculate income elasticities for food and non-alcoholic drinks from a rich panel of household expenditures. For this category, it is found that households are rather homogeneous in their demand responses.
Subjects: 
Income elasticity
Non-parametric
Revealed preference
SSARP
JEL: 
D11
D12
Document Type: 
Working Paper

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