• Journal of Labour Economics
• /
• v.35 no.2
• /
• pp.79-115
• /
• 2012

In the study, we try to get reliable estimates of intergenerational income mobility in Korea. At first, we show that the low estimates of previous studies are mainly due to sample selection problem. The direct estimations using OLS after correcting this problem show higher values than previous estimates. We also compute the attenuation bias by decomposing the variances of earnings into the variances of permanent and transitory components of earnings by the results of the regression. Additionally, we try to estimate the range of intergenerational mobility by comparing the OLS results with the results of the two samples instrumental variable estimation and the three samples instrumental variable estimation. The results of these estimations are a little higher than or similar to OLS results.

• International Area Studies Review
• /
• v.14 no.1
• /
• pp.279-298
• /
• 2010

This paper investigates the characteristics of Korean international tourism demand for selected 13 destination countries by estimating income and travel price elasticities using quarterly data from 1990:1 to 2006:2. Major findings of this paper could be summarized as follows. First, long-run equilibrium relationships between Korean international tourism demand for 13 destination countries, real income and travel price variables are confirmed. Second, the estimated income elasticities of Korean tourism demand for 13 destination countries are all elastic; especially, those for Australia, Philippine, Thailand and China are very elastic. And their estimated values vary with destination countries, which implies the income effects for 13 destination countries are all different; however there is no evidence that the income effects could be characterized by traveling distances. Third, the estimated travel price elasticities of Korean tourism demand for 13 destination countries also differ from destination countries; in most cases, they are elastic except those for Hong Kong and United States. The most travel price elastic countries are Canada, Australia and New Zealand.

• Journal of Energy Engineering
• /
• v.25 no.2
• /
• pp.37-44
• /
• 2016

The demand for electricity has a considerable impact on various energy sectors since electricity is generated from various energy sources. This paper attempts to estimate the electricity demand function and obtain some quantitative information on price and income elasticities of the demand. To this end, we apply a lagged dependent variable model to derive long-run as well as short-run elasticities using the time-series data over the period 1991-2014. Our dependent variable is annual electricity demand. The independent variables include constant term, real price of electricity, and real gross domestic product. The results show that the short-run price and income elasticities of the electricity demand are estimated to be -0.142 and 0.866, respectively. They are statistically significant at the 5% level. That is, the electricity demand is in-elastic with respect to price and income changes in the short-run. The long-run price and income elasticities of the electricity demand are calculated to be -0.210 and 1.287, respectively, which are also statistically meaningful at the 5% level. The electricity demand is still in-elastic with regard to price change in the long-run. However, the electricity demand is elastic regarding income change in the long-run. Therefore, this indicates that the effect of demand-side management policy through price-control is restrictive in both the short- and long-run. The growth in electricity demand following income growth is expected to be more remarkable in the long-run than in the short-run.

• Journal of Korean Society of Transportation
• /
• v.20 no.3
• /
• pp.93-103
• /
• 2002

우리 국민의 교통수요행태를 분석하기 위하여 준이상수요체계(almost ideal demand system) 함수형태의 집계교통수요모형을 설정하였다. 대중교통수단으로서 시내버스, 시외버스, 택시, 기차, 전철이 그리고 개인교통수단으로서 연료비가 포함되었으며, 기타재화 및 서비스에 대한 소비지출이 함께 추정되었다. 추정에 이용된 자료는 통계청의 "도시가계연보"에 수록된 '전국 도시가구 소비지출'과 "물가통계"에 수록된 '전국 도시소비자 물가'이다. 추정결과 모형의 설명력을 나타내는 수정결정계수(adjusted-$R^2$)는 대부분 0.9 내외에서 높게 나타났다. 추정계수는 총 51개중에서 25개가 5% 수준에서 유의한 것으로 나타났다. 추정된 계수값을 이용하여 가격탄력성과 소득탄력성을 구하였다. 자기가격탄력성과 소득탄력성 추정치는 조금 높기는 하나 부호와 상대적 크기가 모두 예상과 일치하고 다른 연구결과들과 유사한 범위에 있다. 연료비에 대한 소득탄력성은 1.72로 가장 높게 나타났고, 대중교통수단은 0.03~0.49 사이에서 나타나므로 교통수단이 정상재임을 의미한다. 보상수요의 교차가격탄력성은 총 15개의 교차관계에서 12개의 관계가 상식과 일치한다. 다음 연구에서는 더 많은 시계열자료를 발굴하여, 장기간의 교통수요 변화에 대한 분석을 시도할 필요가 있다. 또한 초월대수함수나 동태함수 등 다양한 형태의 수요함수를 시도할 필요가 있다. 여러가지 형태의 교통수요함수추정을 통해서 우리 현실에 적합한 교통수요모형을 발견할 수 있을 것이다. 대도시와 중소도시 등 지역별 지출자료를 발굴하여 지역특성을 반영하는 교통수요함수의 추정도 필요하다.

• Management & Information Systems Review
• /
• v.37 no.3
• /
• pp.65-81
• /
• 2018

This study estimated the long-run and the short-run price and income elasticity of crude oil demand by using the ARDL model in Korea. First, the long-run cointegration relationship existed between crude oil demand and price or income in the ARDL-bounds tests. Second, the long-run own price, the cross price elasticity and the income elasticity were both statistically significant elastic and sensitive in the ARDL. Third, there was autocorrelation of the residuals, but no misspecification errors and heteroscedasticity, and then the residuals showed a normal distribution. And the CUSUM & CUSUMSQ tests showed that the coefficients were stable. Fourth, the short-run own price, the cross price elasticity and the income elasticity were both statistically significant elastic and sensitive in the ARDL-RECM. The ECM with the short-run dynamics showed rapid adjustments in the long-run equilibrium of oil demand after the economic crisis. In the short-run, the sensitivity of crude oil demand to price and income changes has moved in the same direction as the long-run case. Korea, depending too much on foreign crude oil, is vulnerable to the shocks of oil prices, so rising oil prices can certainly have a negative impact on Korea's trade balance. And the elasticity of long-run oil prices may help to control and manage Korea's oil demand. The government needs to strengthen monitoring of the country's policies and market trends related to crude oil, establish strategies to customize national policies and market conditions, and strengthen active market dominance efforts through pioneering new market and diversification.

• Management & Information Systems Review
• /
• v.36 no.4
• /
• pp.81-102
• /
• 2017

This study examined the income and price elasticities of tourism demand model by using the ARDL models. This paper used the ARDL & ARDL-RECM model based on the annual number of tourists arrivals, GDP and CPI including tourists from the US, Japan and China entering Korea. First, the income elasticity of the US was inelastic and insensitive necessities for long-run US tourists in the ARDL model. China's income elasticity was elastically sensitive luxuries. Second, the US and China's own price elasticities were very elastic to tourism demand in both models. Third, the US's cross price elasticity showed the relationship between inelastic positive substitutes and inelastic negative complements in China in ARDL model. The cross price elasticities of the US and China showed inelastic positive substitutes in the ARDL-RECM model. Fourth, the coefficients of the error correction term were such that the actual sign and the expected sign of the US and China coincided with the negative sign in the ARDL-RECM model. Therefore, first, it can be established in a tourist policy or tourism strategy through income elasticity. Second, we can improve the quality and differentiation of products, recognizing that Korea's tourism price is more elastic than other markets through price elasticity.

• Journal of Labour Economics
• /
• v.42 no.2
• /
• pp.1-35
• /
• 2019

This paper compares the effects of income transfer and wage subsidy in a simple general equilibrium model. The redistributive effects of both policies are smaller, the more intensive in low wage workers are the luxury goods production. Wage subsidy contributes more to employment and GDP relative to income subsidy, but its redistributive effects can be smaller depending on the elasticities of labor demand supply. More complete empirical analysis appears due on the effects of both policies in order to design an optimal mix of efficiency and equity.

• Journal of Energy Engineering
• /
• v.22 no.1
• /
• pp.1-7
• /
• 2013

This paper attempts to estimate the residential electricity demand function, using survey data of 521 households in Korea. As the residential electricity demand function provides us information on the pattern of consumer's electricity consumption, it can be usefully utilized in predicting the impact of policy variables such as electricity price and forecasting electricity demands. We apply least absolute deviation(LAD) estimation as a robust approach to estimating parameters. The results showed that price and income elasticities are -0.68 and 0.14 respectively, and statistically significant at the 10% levels. The price and income elasticities portray that residential electricity is price- and income-inelastic. This implies that the residential electricity is indispensable goods to human-being's life, thus the residential electricity demand would not be promptly adjusted to responding to price and/or income change.

• Journal of Korean Society of Transportation
• /
• v.30 no.2
• /
• pp.7-20
• /
• 2012

The objective of this paper is to construct pseudo-panel data set and estimate price and income elasticities of car travel demand, using 1995-2007 household income and expenditure survey data, in order to provide quantitative information for analyzing related policy effects in the transport sector. We categorized household survey data into 14 cohorts based on the birth year of the household head. As the result, a total of 133 pseudo-panel data sets was created for estimating price and income elasticities of car travel demand. Especially, price and income elasticities of car travel demand were separately estimated both short-term and long-term. We analyzed the panel model considering fixed effect within cohorts, using explanatory variables such as previous year's fuel consumption, real household income after tax, education level of the household head, the number of children under five, and the share of household type averaged by cohorts. As results, the short-term and long-term price elasticities of car travel demand were calculated as 0.2974-0.4280 and 0.4087-0.6275, respectively. Similarly, the short-term and long-term income elasticities were calculated as 0.3364-0.6281 and 0.7098, respectively.

• Journal of Korean Society of Forest Science
• /
• v.54 no.1
• /
• pp.41-48
• /
• 1981

The income and price elasticities of the timber demand for the 27 years (1953~79) in Korea were analyzed by the 3 economic growth stages - in 1953~61, in 1962~71, in 1972~79-. The results obtained are as follows : 1. In 1953~79, the income and price elasticities of the total timber demand were respectively 1.87 and -0.47 ; those of the domestic timber demand were respectively 0.09 and -0.30 ; those of the foreign timber demand were respectively 2.50 and -0.11. 2. In 1953~61, the income and price elasticities of the total timber demand were respectively 2.11 and -0.86 ; those of the domestic timber demand were respectively -2.94 and -0.57 ; those of the foreign timber demand were respectively 1.20 and 0.43. 3. In 1962~71, the income and price elasticities of the total timber demand were respectively 2.89 and -0.20 ; those of the domestic timber demand were respectively 1.38 and -0.25 ; those of the foreign timber demand were respectively 3.54 and -0.42. 4. In 1972~79, the income and price elasticities of the total timber demand were respectively 1.07 and 0.17 ; those of the domestic timber demand were respectively 1.12 and 0.12 ; those of the foreign timber demand were respectively 1.22 and 0.17.